Qantas signals price increases as fuel costs continue to bite

• Demand remains strong but Qantas to continue to adjust fares and capacity in response to higher fuel costs

Qantas Group will reduce domestic flights and raise some fares in response to the elevated cost of fuel through to 2027.

The Group’s fuel cost is now expected to be approximately $3.75 billion in the first half of this financial year.

“The Group has and will continue to adjust fares and capacity in response to higher fuel costs,” Qantas said.

Qantas said demand remains resilient as customers continue to prioritise travel and is expanding its international Qantas network of flights by one per cent in the third quarter of 2027.

“International demand across Qantas and Jetstar remains strong, supported by customers redirecting travel away from the Middle East,” Qantas said.

“Domestic leisure demand remains strong. Non-resources corporate and government travel remains stable and is being closely monitored.”

Qantas will launch a new seasonal non-stop service between Sydney and Cape Town. The direct flights will take off in October 2027 and run through until March 2028.

Once launched, it will add almost 30,000 seats between Australia and South Africa and is made possible by the introduction of new Qantas 787-9 Dreamliner aircraft arriving in late 2027 as part of the largest fleet renewal in the airline’s history.

“The arrival of our new 787s as part of our historic fleet renewal gives us the flexibility to grow our international network in places we know our customers want to travel, while also creating new opportunities for our people,” Qantas International CEO Cam Wallace said.