Qantas raises fares and deepens domestic flight cuts as fuel costs rise

Both Qantas and its budget airline Jetstar are scaling back domestic schedules in the first three months of 2027. The group now expects a fuel bill of A$3.75 billion for the final six months of 2026, up from A$3.6 billion. Qantas says demand remains resilient and it will keep adjusting fares and capacity in response to higher fuel costs.