Surging jet fuel prices may raise costs for Qantas by up to $800 million in the second half of this year, the airline said on Tuesday.
War in the Middle East has led jet fuel prices to more than double, and they remain "extremely volatile", the carrier said in a market update.
The cost of jet fuel in the second half of 2026 is now expected to be $3.1 billion to $3.3 billion, it said — up from $2.5 billion in Qantas' previous forecast.
Qantas said it was working with the Australian government and jet fuel suppliers, who were confident of fuel supply for the rest of April and well into May.
"We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains," the airline group said.
"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 it was benefiting, however, from a boost in demand for travel to Europe as passengers avoided Middle East routes.
"In response, the Group has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome."
Qantas said unit revenue on international routes was now expected to grow by 4-6 per cent year-on-year in the second half of 2026 — double its previous forecast.
For domestic flights, revenue was set to rise by about 5 per cent, up from its previous expectation of a 3 per cent increase.
Qantas said it may have to take further action on fuel prices.
"The Group continues to closely monitor the dynamic environment and retains optionality to take further actions to mitigate fuel cost increases over time."
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