Overview
- Qantas announced a 5% cut to domestic capacity, higher fares, and more Europe flights as it shifts aircraft to stronger routes.
- The carrier now expects A$3.1–3.3 billion in jet‑fuel costs for the June half, lifting its forecast by A$500–800 million.
- Qantas said it hedged most crude but remains exposed to jet‑fuel refining margins that jumped from about US$20 a barrel to near US$120.
- Peers are also moving to protect earnings, with Virgin Australia trimming about 1% of domestic flying and warning a A$30–40 million hit, while Virgin Atlantic added surcharges of up to £360.
- Governments and suppliers report near‑term supply is secure, with Australia holding about 28 days of jet fuel, though industry groups warn of tightness if Strait of Hormuz flows stay constrained.