SYDNEY, Nov. 6, 2026 — Qantas Group told the market on Friday that Qantas and Jetstar will trim domestic flying by 4% and keep lifting fares as fuel costs rise. The cut is double the 2% reduction the group forecast in August. This is a new development after yesterday’s report on the sale of 44 Boeing 737s to AerFin.
What changed
| Item | Detail |
|---|---|
| Domestic capacity (Qantas + Jetstar) | Down 4%, up from the 2% cut forecast in August |
| When | 2027; NewsCop puts it at January–March 2027 versus a year earlier |
| Routes affected | TBA |
| Fares | Will keep rising; no percentage published |
| First-half FY27 fuel bill | About A$3.75bn (ABC rounds to A$3.8bn), up from a A$3.6bn projection three months ago |
| Fuel hedged | About 85% of the year, mostly in Brent crude |
| Group unit revenue | Expected up 8–10% in the first half |
ABC links the fuel surge to the Iran war, and the airline expects prices to stay high. In ABC’s words, “Fuel prices are expected to remain elevated through financial year 2027.”
What it means for non-revs
- Fewer domestic seats plus higher fares usually means fuller aircraft. Expect tighter standby on Qantas and Jetstar domestic flights in early 2027.
- The January–March window overlaps Australia’s summer school holidays. If you plan domestic pass travel then, build in extra days and check loads early.
- The routes losing frequency have not been named (TBA). Watch for schedule changes before you commit to a multi-sector trip.
- If your benefits include other carriers, line up a backup option before you travel in that period.
Sources
- ABC News — Qantas to increase airfares, cut flights as Iran war causes fuel prices to surge
- NewsCop — Qantas and Jetstar to cut more domestic flights and raise fares as fuel bill climbs
Get NonRev Travel News by email
ADVERTISEMENT
A weekly recap newsletter, sent out every Sunday, with the airline, airport, cruise and travel-warning news that matters to airline employees and retirees. Free.
Subscribe free
