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

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Qantas has increased fares and reduced domestic flight capacity due to shifting travel patterns influenced by Middle East turmoil. The airline is redeploying resources from its US and domestic networks to capitalize on increased demand for Europe-bound travel, particularly to Paris and Rome. This shift comes as Persian Gulf carriers reduce services, prompting travelers to seek alternative routes. Qantas anticipates a significant rise in its fuel bill due to surging oil prices related to the Iran conflict, estimating costs between $3.1 billion and $3.3 billion for the second half of the 2026 financial year. To mitigate these rising costs, Qantas has implemented fare increases and prioritized high-demand European routes, with potential for further adjustments.
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AI-ExtractedThe 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 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.
Persian Gulf carriers – including Emirates, Etihad and Qatar airlines – have been reducing services due to the Iran conflict.
Qantas plans to cut domestic capacity by about 5%, with off-peak services the likely target.
Qantas has lifted fares and cut domestic flights amid a surge in travel demand away from airlines that transit through the troubled Middle East.
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