In brief
Qantas confirmed it will adjust airfares and trim capacity to cope with higher fuel costs, projecting first‑half FY27 fuel spending of A$3.75 billion and a 4‑percent cut in domestic capacity for Q3 FY27. The carrier claims it has hedged about 85 % of fuel exposure and still forecasts 8‑10 % revenue growth.
In a Friday statement, Qantas Group announced it will keep adjusting fares and reducing flight capacity to mitigate the impact of rising fuel prices that are expected to stay high through the 2027 fiscal year. The airline said its first‑half FY27 fuel costs are now projected at A$3.75 billion – up from A$3.6 billion in August – and that domestic capacity for Q3 FY27 would fall 4 percent versus the same period a year earlier, double the 2 percent cut previously forecast.
The carrier added that it has hedged about 85 % of its fuel exposure for FY27, largely against Brent crude oil prices, and that unit revenue for both its domestic and international businesses should grow 8‑10 percent in the first half of the year compared with a year earlier.
"Based on forward curves, fuel prices are expected to remain elevated through FY27," the statement read. "The Group has and will continue to adjust fares and capacity in response to higher fuel costs."
This statement follows earlier guidance issued in August, which projected a 2‑percent capacity reduction for Q3 FY27. Qantas has not yet detailed specific fare increases or how the cuts will affect particular routes.
