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Qantas and Jetstar are cutting flight capacity as fuel prices continue to climb. Qantas Group said jet fuel prices had more than doubled since it released its half-year outlook in February, driven by sharp increases in oil refining margins.
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The airline now expects its fuel bill for the second half of the 2026 financial year to rise to between A$3.1 billion (NZ$3.72 b) and A$3.3b (NZ$3.9 b). That’s $600 to $800 million (AUD) more than forecast.
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Three weeks ago, Jetstar announced it had cancelled 12% of its scheduled flights in May. The cuts affect Auckland-Wellington and Auckland-Christchurch services, along with Auckland flights to Sydney and Brisbane.
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Jetstar flies to Sunshine Coast, Rarotonga, Gold Coast, Cairns, Brisbane, Melbourne and Sydney from several NZ ports.
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Its international revenue per seat kilometre in the second half of the year was now expected to grow by 4 to 6%, about double its earlier forecast.
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Qantas said demand for Europe remained strong as travellers sought alternative routes that avoid the Middle East.
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In response, the airline has moved aircraft away from some United States and domestic services to add more flights to Paris and Rome.
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That means New Zealanders travelling to Europe through Australia, particularly during the northern summer, will have more seats, but don’t expect that to bring down prices.
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Qantas said fuel suppliers had given it confidence that enough jet fuel would be available through the rest of April and into May, but warned the situation remained uncertain.
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The company said it could take further action if fuel prices remain high.
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