Qantas lifts fuel forecast and plans 2027 capacity cuts

Qantas says higher fuel costs will prompt fare adjustments and domestic capacity cuts in 2027, as it raises its forecast fuel bill for the final six months of 2026 to A$3.75 billion. The airline said travel demand remains resilient, including strong international and domestic leisure demand. The projected bill is A$150 million above Qantas’s previous A$3.6 billion estimate and A$1.1 billion higher than the cost for the same period a year earlier. The company attributed the increase to the prolonged impact of the conflict in the Middle East on energy prices. Qantas said it would continue adjusting fares and capacity in response to higher fuel costs. Its market update ahead of its annual general meeting also said it had hedged about 85% of its fuel bill for financial year 2027, while fuel prices were expected to remain elevated through that year. The reports differ on the schedule of domestic capacity reductions. One account said Australian flying would be reduced by 4% during the first three months of 2027, twice the 2% cut forecast in August. Another described domestic capacity and route cuts accelerating from 1% in the first quarter to 5% in the second quarter. The figures...