Qantas will cancel all of its services in and out of the regional South Australian city of Mount Gambier from next month, citing fuel costs and declining demand.
The airline operates services between Mount Gambier and Adelaide four days a week, but this morning announced it was halting flights starting on May 18.
It leaves Regional Express (REX) Airlines as the sole operator at the airport, which has flights to both Adelaide and Melbourne seven days a week.Â
The airline’s fuel bill was expected to increase by $600-800 million.
To offset higher costs, it will reduce domestic capacity across Qantas and Jetstar by five percentage points between May 18 and June 30.Â
Flights ‘no longer viable’
It also cited declining demand for the Mount Gambier-Adelaide route, saying some flights operated at less than 20 per cent of capacity.Â
QantasLink CEO Mark Dal Pra said impacted customers would be contacted and offered a refund.Â
“We know this is frustrating for customers and the local community and sincerely apologise for any inconvenience caused,” he said.
The Mount Gambier Regional Airport is operated by the District Council of Grant. (ABC South East SA)
“While the recent increase in fuel prices is making the situation more difficult, the previous decline in demand means the route is simply no longer viable for us to continue operating.
“We’ve tried to boost demand by adjusting schedules, working with the local council, and offering multiple sales, however demand is well below sustainable levels.”
SA Premier Peter Malinauskas said he “respects the commercial imperative Qantas is dealing with”.Â
“On the other hand, naturally it’s disappointing to lose those services from Mount Gambier,” he said.
“But it speaks to the exact reason the federal government intervened to save REX.
“It’s fair to say we expressed our disappointment to Qantas, to put it politely.”Â
Qantas launched flights between Mount Gambier and Adelaide in March 2021.Â
It also operated flights to Melbourne, but ceased those routes in 2022.Â
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