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In a recent financial briefing, the airline disclosed plans to allocate between $3.1 billion and $3.3 billion for jet fuel expenses during the latter half of its fiscal year. This adjustment follows a dramatic surge in refinery costs, which have escalated from $20 per barrel to $120 per barrel.
This spike in fuel prices is projected to negatively impact the airline’s financial performance, potentially reducing its profits by $500 million to $800 million.
Qantas Group has emphasized its collaboration with government officials and jet fuel suppliers, who remain optimistic about maintaining a stable fuel supply through the end of April and extending into May.
“Given the ongoing uncertainties in global fuel supply chains, we are keeping a vigilant eye on developments,” the update stated.
The group has implemented various strategies to cushion the effects of the Middle Eastern conflict, including alterations to its international routes, adjustments in flight capacity, and increased ticket prices.
Passengers on impacted Qantas and Jetstar domestic flights will be contacted about new flights.
Despite the brutal hit to the compay’s cashflow, Qantas said it has seen a strong spike in demand for international travel to Europe as travellers book alternative routes.
The airline has redeployed capacity from domestic and US legs to service more flights to Paris and Rome.
Qantas subsidiary Jetstar has already slashed flights between Sydney and Auckland and Brisbane and Auckland by 12 per cent, around 55 flights, as jet fuel costs bite.
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