In brief
Qantas says fuel costs are climbing to about A$3.75 billion in the first half of FY27 and will keep adjusting fares and flight capacity. It plans to cut domestic capacity by 4 percent in Q3 FY27, double last year’s plan, while hedging 85 % of fuel exposure. Despite these changes, the airline expects revenue growth of 8‑10 percent.
On November 6, the Australian flag‑carrier Qantas announced it will keep shifting prices and flight slots to counter rising fuel costs that are expected to stay high through FY27.
Fuel expenses are projected at A$3.75 billion for Qantas and its low‑cost arm Jetstar in the first half of the 2027 financial year, up from A$3.6 billion a few months earlier. The company has secured about 85 percent of its fuel needs through hedging, mainly against Brent crude oil prices.
Domestic flight slots will be trimmed by 4 percent in the group’s third quarter of FY27—a 4‑percent cut that doubles the 2‑percent reduction forecasted in August.
Despite the higher expenses, Qantas still expects unit revenue growth of 8‑10 percent for both its domestic and international lines, unchanged from its August guidance.
Statement from Qantas Group spokesperson:
Based on forward curves, fuel prices are expected to remain elevated through FY27. The Group has and will continue to adjust fares and capacity in response to higher fuel costs.
