It had made international network changes, capacity adjustments and fare increases in response.<\/p>\n
Qantas did not fly to the Middle East.<\/p>\n
Its nearest year-round destinations were Bengaluru, direct from Sydney, and Paris, direct from Perth. <\/p>\n
It flew to Rome from early May to late October. <\/p>\n
When it launched that route in 2022 it was the first nonstop flight between Australia and continental Europe, following the Qantas Perth-London service launched in 2018.<\/p>\n
Qantas said demand for international travel to Europe was strong.<\/p>\n
\u201cIn response, the group has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome.\u201d<\/p>\n
The airline\u2019s US destinations were New York, San Francisco, Las Vegas, Los Angeles and Dallas.<\/p>\n
Qantas said it had provided additional support to customers booked to travel on partner airlines to the Middle East, with this including more flexibility to move flights or receive a refund.<\/p>\n
The airline is in the oneworld alliance, which includes Qatar Airways, Cathay Pacific and Oman Air.<\/p>\n
Qantas said for the fourth quarter \u2013 April, May and June \u2013 it had cut domestic capacity by about 5%.<\/p>\n
It was working with the Government and jet fuel suppliers to get confidence about fuel supply for the rest of April and well into May.<\/p>\n
\u201cWe are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains.\u201d<\/p>\n
It said affected Qantas and Jetstar customers were being contacted and offered alternative flights or refunds.<\/p>\n
Qantas airline said it was still in a strong financial position.<\/p>\n
An interim dividend of A$300 million and A19.8c a share ($362m and 23.93c at today\u2019s exchange rate) would be paid on April 15. <\/p>\n
Qantas says it has cut domestic capacity by about 5% for the fourth quarter. Photo \/ David Gray, AFP<\/p>\n
Air NZ v Qantas<\/p>\n
Forsyth Barr head of research Andy Bowley said the crack spread had oscillated between US$100 and US$120 for the past week.<\/p>\n
That was five or six times the pre-war premium jet fuel customers usually paid.<\/p>\n
He said Air New Zealand was well-hedged too, at about 83% when its first-half results were issued in late February.<\/p>\n
Hedging in this context broadly meant if oil prices rose, airlines were protected. <\/p>\n
If prices fell, they might miss out on cheaper fuel, but avoided risk.<\/p>\n
Bowley said Air New Zealand\u2019s level of crude oil hedging would be higher now the airline, like Qantas, had cut capacity.<\/p>\n
Air New Zealand chief executive Nikhil Ravishankar last week emailed customers about the airline\u2019s response to the Iran conflict.<\/p>\n
He confirmed the airline\u2019s fuel bill had more than doubled, costing an extra $4.5m a day. <\/p>\n
The airline said it was pencilling in more schedule changes for May and June, affecting about 1% of customers.<\/p>\n
Asked if Air NZ should also issue a market update, Bowley said: \u201cI\u2019d be surprised if we were talking in six weeks\u2019 time and they hadn\u2019t put anything out.\u201d<\/p>\n
He said Air New Zealand\u2019s problem was how volatile the situation was.<\/p>\n
\u201cThe problem they\u2019ve got at the moment is the potential outcomes are pretty wide.\u201d<\/p>\n
Brent crude was at US$97.95 this afternoon and prices have been unusually volatile since the conflict began on February 28.<\/p>\n
Iran slammed a US blockade around its ports<\/a> as a \u201cgrave violation\u201d of its sovereignty, AFP reported this afternoon.<\/p>\n The blockade came into force at 1am Monday, New Zealand time.<\/p>\n US Vice-President JD Vance told Fox News some progress had been made in negotiations with the Iranians.<\/p>\n But he also said Iran\u2019s regime had engaged in \u201ceconomic terrorism against the entire world\u201d by threatening ships in the Strait of Hormuz. <\/p>\n Vance said the new US blockade would apply economic pressure on Iran by preventing Iranian ships getting through the strait.<\/p>\n