In brief
Qantas said it will continue to adjust airfares and flight capacity as fuel prices remain high, projecting first‑half FY27 fuel costs of roughly A$3.75 billion. The airline plans a 4 % cut in domestic capacity in the third quarter of FY27 and has hedged about 85 % of its fuel exposure. The move follows earlier guidance that unit revenue would grow 8‑10 % in FY27.
Qantas announced on Friday that it will adjust fares and reduce flight capacity as fuel costs continue to rise, with projected fuel expenses for the first half of financial year 2027 climbing to about A$3.75 billion, up from the A$3.6 billion forecast in August.
The carrier said domestic capacity across Qantas and its low‑cost unit Jetstar in the third quarter of FY27 will be cut by 4 % compared with the same period a year earlier, double the 2 % reduction it had projected in August.
Qantas also confirmed it has hedged roughly 85 % of its fuel exposure for FY27, mainly against Brent crude oil prices, and expects total unit revenue for both its domestic and international businesses to grow 8‑10 % over the same period a year earlier.
In a statement, Qantas noted that “Based on forward curves, fuel prices are expected to remain elevated through FY27,” and added that the group would continue to adjust fares and capacity in response to higher fuel costs. Nine.com.au reported the same move, saying Qantas will "continue to adjust fares and capacity in response to higher fuel costs".
