\u25bc ADVERTISING \u25bc<\/p>\n<\/p>\n
\u25bc ADVERTISING \u25bc<\/p>\n<\/p>\n
It\u2019s important to note that US carriers don\u2019t hedge fuel, meaning every price spike hits in real time, with the potential to add billions to annual costs if it holds.<\/p>\n
The supply chain Australia can\u2019t control<\/p>\n
What many of us have probably never considered until now is just how exposed Australia is to global supply chains, too. We import more than 80 per cent of our jet fuel from Asian refineries, and when those flows tighten, the impact is immediate. China has already significantly curbed fuel exports, while key suppliers like South Korea are facing their own supply pressures.<\/p>\n
Korean Air has entered emergency management mode<\/a>, with Asiana and T\u2019way already there. South Korean airlines have asked their government to redirect fuel domestically, further squeezing Australian supply. With the Hormuz Strait still closed and Australia holding just 29 to 32 days of reserves, May is anticipated to be when that pressure could build.<\/p>\n Here in Australia, Virgin Australia has confirmed its Doha services are cancelled until at least mid-June, a disruption to a relatively new route launched last year<\/a> using wet-leased aircraft from Qatar Airways, and a reminder of just how quickly global instability is reshaping airline networks.<\/p>\n Jetstar has cut roughly 12 per cent of its trans-Tasman flights for May, and Air New Zealand has axed around 1,100 flights through early May, affecting 44,000 passengers, and raised fares 10 to 15 per cent.<\/p>\n Passenger volumes through key Asian hubs have surged<\/a> following the initial disruption, as airlines reroute traffic and consolidate capacity. Those hubs have finite capacity, and Australia is exposed to many of them.<\/p>\n Thankfully, though, it\u2019s not all contraction. Emirates is back to roughly three-quarters of its pre-crisis capacity and climbing. Qatar Airways says it will serve more than 90 destinations by mid-April, rising to around 120 by mid-May, against a normal network of more than 160. Etihad Airways is flying to around 80 destinations, close to its typical footprint.<\/p>\n After a devastating March, the Middle Eastern hubs are starting to rebuild, albeit on shifting schedules, and that matters greatly for advisors selling Europe and beyond, with the Northern Hemisphere summer just around the corner.<\/p>\n Why \u2018amend, don\u2019t cancel\u2019 matters more now<\/p>\n In an\u00a0open letter this week<\/a> on the company\u2019s UK consumer website, Flight Centre global managing director Andrew Stark urged travellers to hold their nerve.<\/p>\n \u201cCancelling early often forfeits your refund entitlement, and airlines can take up to 12 weeks to return funds, leaving you without the money to rebook,\u201d he said.<\/p>\n Middle East carriers are flagging refund processing times of up to 28 days, Stark noted. Travellers are pivoting to shorter-haul packages and rail, but demand itself has not wavered.<\/p>\n Praising his team\u2019s response since the crisis began, Stark said, \u201cI owe gratitude to our 3,316 people (Flighties) around the world who act as the travel industry\u2019s first responders when a crisis hits. It takes skill, ingenuity, a calm temperament\u00a0and a fair bit of grit to get the job done.\u201d<\/p>\n FCTG global leisure CEO James Kavanagh echoed Stark\u2019s sentiment, recently telling Karryon<\/a>\u00a0that DIY online bookers are flooding back to advisors, reinforcing a pattern the industry sees in every major disruption. People still want to go. They just want help getting there.<\/p>\n![\"Korean](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/Korean-Air-new-livery-logo.jpg.webp.webp\" "\\"Seats"){kind=logo}
Korean Air and its recently launched new brand
\nCapacity continues to shapeshift<\/p>\n![\"Flight](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/Flight-Centre\u2013Andrew-Stark.jpg\" "\\"Seats")
Flight Centre Global MD Andrew Stark <\/p>\n