Qantas Raises Fuel-Cost Forecast and Reviews Airfares and Capacity

SYDNEY, AUSTRALIA — Qantas has increased its forecast fuel bill for the six months ending December 31, 2026, warning that elevated energy costs are continuing to shape airline pricing and capacity decisions.

In a November 2026 market update released in Australia on November 6, the Qantas Group said it expected first-half fuel costs of approximately A$3.75 billion, or A$150 million more than its earlier projection.

How the airline is responding

The Australian carrier said demand remains resilient across its Qantas and Jetstar brands, including strong international demand and leisure travel. It also said it has already adjusted fares and flight capacity and will continue to respond to cost conditions.

Qantas reported that it had hedged approximately 85 per cent of its expected fuel requirements for the financial year, predominantly with arrangements linked to Brent crude oil. Hedging can reduce some volatility but does not eliminate the effects of rising jet-fuel costs.

The group maintained guidance for growth of eight to ten per cent in domestic and international unit revenue in the first half of its 2027 financial year.

Capacity and investment

Qantas indicated that full-year net capital expenditure was expected to be near the lower end of an earlier A$4.3 billion to A$4.6 billion range. Flight capacity plans are also being adjusted in response to costs and route demand.

International fuel costs matter to airlines worldwide because fuel is a major operating expense. Higher costs can lead to changes in ticket pricing, schedule planning and aircraft deployment, although the effect on any specific route depends on local competition and demand.

The update is a forecast, not a final financial result for the six months ending December 31.

Official Qantas market update: https://www.qantasnewsroom.com.au/media-releases/qantas-group-market-update-november-2026