Volatile fuel prices blamed as dozens of Qantas and Jetstar flights axed

Qantas is set to cut around 5 per cent of domestic flights amid surging fuel prices and shortages as a result of ongoing conflict in the Middle East, with one route already axed.

The airline released a 2026 market outlook update on Tuesday saying jet fuel prices have more than doubled since the first outlook was released earlier in the year and remain “highly volatile”.

“The group is working closely with the government and jet fuel suppliers who continue to provide confidence in fuel supply for the remainder of April and well into May,” the airline said in a statement.

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“We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains.”

Qantas said it had taken “action to mitigate the impact of the conflict in the Middle East” which included international network changes, capacity adjustments and fare increases.

The airline said its fuel bill is forecast to increase by between $600 million and $800 million in the first half of this year.

Qantas said it will begin cutting some domestic flights later in the year. Credit: Getty Images

“Given the continued volatility in fuel prices and the global economic conditions, the group has reduced domestic capacity in (the later part of the year) by around 5 percentage points,” the ariline said.

“Affected Qantas and Jetstar customers are being contacted directly and offered alternative flights or a refund.”

On Tuesday Qantas said it had also made the decision to indefinitely suspend flights between Adelaide and Mount Gambier from May 18.

The airline said affected Qantas and Jetstar customers would be contacted and offered alternative flights or refunds. Credit: AAP

“We know this is frustrating for customers and the local community and sincerely apologise for any inconvenience caused,” QantasLink CEO Mark Dal Pra said.

“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.”

Dal Pra said the airline had tried to boost demand by adjusting schedules, working with the local council, and offering multiple sales, however demand is “well below sustainable levels”.

Qantas to focus on passenger demand

The airline said while it does not operate through the Middle East, the group has provided additional support to customers booked to travel on partner airlines, including more flexibility to move flights or receive a refund.

“Qantas continues to see strong demand for international travel to Europe as customers seek alternative routes,” it said.

“In response, the group has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome.

“The group continues to closely monitor the dynamic environment and retains optionality to take further actions to mitigate fuel cost increases over time.”