Friday 6 November 2026In a market update ahead of its annual meeting, the airline said fuel prices are expected to stay elevated through the 2027 financial year.
Featured image: Photo by Benlisquare (CC BY-SA 4.0), via Wikimedia Commons. Illustrative image of a Qantas Airbus A330 taking off.
Key facts
- Qantas said domestic flights across Qantas and Jetstar will be cut by a total of 4 per cent in 2027.
- The airline expects first-half 2027 fuel costs of about $3.75 billion to $3.8 billion.
- About 85 per cent of the annual fuel bill is hedged, mostly in Brent crude.
- Qantas describes domestic and international demand as strong and corporate and government travel as stable.
- Direct Sydney to Cape Town flights are planned for October 2027 to March 2028.
The update
Qantas told the market on Friday morning, ahead of its annual general meeting, that it will keep adjusting fares and capacity in response to higher fuel costs, the ABC reported. The airline said domestic flights across Qantas and Jetstar will be cut by a total of 4 per cent in 2027, and that it expects fuel prices to stay elevated through the 2027 financial year.
Fuel and demand
Qantas expects first-half 2027 fuel costs of around $3.75 billion to $3.8 billion, with about 85 per cent of its annual fuel bill hedged, mostly in Brent crude. The airline described both domestic and international demand as strong and corporate and government travel as stable. It forecast revenue per available seat kilometre to rise by up to 10 per cent in the first half, mostly from international travel.
Brent crude is above US$100 a barrel, up from about US$60 before the United States attacked Iran in February, according to the ABC. Qantas reported a 2025-26 net profit of $1.3 billion, down almost 20 per cent.
New routes and earlier cuts
Qantas plans direct flights between Sydney and Cape Town from October 2027 to March 2028. The airline had already cut domestic capacity and raised fares in April 2026, citing fuel costs.
What happens next
Qantas says it will continue adjusting fares and capacity as fuel costs require. It reports demand as strong across its markets.
More from this day: News Today: 6 November 2026, Australia and World Headlines
