Qantas Reduces Domestic Flights Amid Rising Fuel Costs Due to Middle East Conflict
Qantas Group has announced a reduction in its planned domestic capacity expansion for the April-June quarter, scaling back by five percentage points due to rising fuel costs triggered by the conflict in the Middle East. Originally, Qantas intended to increase domestic capacity by 4% year-on-year for the quarter, but now expects a 1% decrease. This adjustment affects both Qantas domestic and Jetstar flights. In response to strong demand for international travel to Europe, Qantas is reallocating capacity from the U.S. and domestic routes to increase flights to destinations like Paris and Rome. The airline's overall international capacity growth remains at 3% for the quarter. Qantas has hedged approximately 90% of its exposure to crude oil for the second half of the fiscal year but remains vulnerable to changes in jet refining margins. The airline estimates its second-half fuel costs will range between A$3.1-3.3 billion, up from a previous projection of A$2.5 billion. 
