Qantas cuts its domestic flights as fuel crisis delivers $800million blow - how it will affect you

By CAITLIN POWELL - NEWS REPORTER Published: 00:58, 14 April 2026 | Updated: 01:23, 14 April 2026 Qantas will slash domestic capacity over the next two months and likely raise airfares as soaring fuel prices threaten a $500million hit to full-year profit.  'Given the continued volatility in fuel prices and the global economic conditions, (Qantas Group) has reduced domestic capacity in (the fourth quarter of the 2026 financial year) by around 5 percentage points,' a statement on Tuesday said. 'Affected Qantas and Jetstar customers are being contacted directly and offered alternative flights or a refund.' Although around 90 per cent of its crude oil supply is hedged, jet refining margins have surged. As a result, Qantas estimated that it could be paying between $3.1billion and $3.3billion for the six months up to June 30, the second half of this financial year. This is expected to cost the airline an additional $600million to $800million in their fuel bill for the second half of this year.  'The group is working closely with the government and jet fuel suppliers, who continue to provide confidence in fuel supply for the remainder of April and well into May,' the airline said. 'We are closely monitoring the situation, given the ongoing uncertainty in global fuel supply chains.' Qantas will be axing some domestic flights as oil price hikes hit the aviation sector (stock) Aviation industry consultant Tony Webber, warned the Australian Financial Review in March that the airline's earnings could drop to $544million if conflict in the Middle East continues. Mr Webber, who is a former chief economist for Qantas, also projected the cut to domestic flights. 'They will cut capacity most on longer sectors where fuel costs are a higher percentage of total costs and where reducing capacity provides the strongest fare response – usually routes with more business and fewer leisure travellers,' he said. In its statement on Tuesday, Qantas said it does not operate in the Middle East but has seen strong demand from people chaoosing to fly to Europe on alternative routes. 'In response, the Group has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome,' it said. The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.