Qantas raises fares and cuts domestic flights as travel patterns shift due to Middle East turmoil

Qantas says it has cut domestic flights and redeployed capacity from its US and domestic network to take advantage of the strong interest in Europe-bound travel. Photograph: Phil Noble/Reuters View image in fullscreen Qantas says it has cut domestic flights and redeployed capacity from its US and domestic network to take advantage of the strong interest in Europe-bound travel. Photograph: Phil Noble/Reuters Qantas raises fares and cuts domestic flights as travel patterns shift due to Middle East turmoil As Persian Gulf carriers reduce routes, the Australian airline is also feeling the impact of rising fuel costs Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily news podcast Qantas has lifted fares and cut domestic flights amid a surge in travel demand away from airlines that transit through the troubled Middle East. The Australian airline says it has redeployed capacity from its US and domestic network to take advantage of the strong interest in Europe-bound travel – in particular to Paris and Rome – according to a market update released on Tuesday. Qantas plans to cut domestic capacity by about 5%, with off-peak services the likely target. Persian Gulf carriers – including Emirates, Etihad and Qatar airlines – have been reducing services due to the Iran conflict, prompting passengers to seek alternatives. While Qantas is benefiting from demand for flights that transit through Asia, it says its jet fuel bill is rising sharply due to surging oil prices caused by the Iran conflict. “The group has taken action to mitigate the impact of the conflict in the Middle East, including international network changes, capacity adjustments and fare increases,” Qantas said in a statement on Tuesday. Qantas said its expected fuel bill for the second half of the 2026 financial year will be between $3.1bn and $3.3bn, up from its prior forecast of $2.2bn. To offset rising fuel costs, Qantas has increased ticket prices and prioritised flights towards high-demand European routes. It has warned it may need to take “further action”, likely referring to further air fare increases. Airlines partially protect themselves against fuel increases by using hedging contracts that lock in a price for future fuel consumption. Shares in Qantas slid more than 3% in early trading on Tuesday after releasing its market update. Explore more on these topics Qantas Consumer affairs US-Israel war on Iran Transport Petrol prices Airline industry Business news Share Reuse this content