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Qantas Airways announced on Tuesday that escalating jet fuel prices could potentially increase their expenses by as much as $800 million in the latter half of this year.
The airline attributed the surge in jet fuel costs, which have more than doubled, to the ongoing conflict in the Middle East, describing the market as “extremely volatile” in their latest financial update.
For the second half of 2026, Qantas now anticipates jet fuel expenses to range between $3.1 billion and $3.3 billion, a significant rise from their earlier estimate of $2.5 billion.
In response, the airline is collaborating with the Australian government and fuel suppliers, who have assured a stable fuel supply through the end of April and well into May.
“We are keeping a vigilant eye on the situation due to the persistent unpredictability in the global fuel supply chain,” stated the airline group.
“The Group has taken action to mitigate the impact of the conflict in the Middle East, including international network changes, capacity adjustments and fare increases.”
Qantas said it was benefiting, however, from a boost in demand for travel to Europe as passengers avoided Middle East routes.
“In response, the Group has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome.”
Qantas said unit revenue on international routes was now expected to grow by 4-6 per cent year-on-year in the second half of 2026 — double its previous forecast.
For domestic flights, revenue was set to rise by about 5 per cent, up from its previous expectation of a 3 per cent increase.
Qantas said it may have to take further action on fuel prices.
“The Group continues to closely monitor the dynamic environment and retains optionality to take further actions to mitigate fuel cost increases over time.”
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