Qantas to cut 5% of domestic flights amid rising fuel costs

Qantas will cut 5% of all domestic flights, including through Jetstar, amid rising fuel costs due to the conflict in the Middle East.

Qantas to cut 5% of domestic flights amid rising fuel costs

Qantas has announced it will cut 5% of its domestic flights from 18 May.

The airline, which also operates budget carrier Jetstar, cited rising fuel costs linked to the Middle East conflict.

Transport Workers’ Union (TWU) National Assistant Secretary Emily McMillan said the cuts are “another indicator of how workers and passengers are forced to bear the brunt in times of crisis in aviation.”

Here’s what you need to know.

Background

Since the U.S. and Israel launched strikes on Iran on 28 February, Iran has effectively closed the Strait of Hormuz – one of the world’s most critical oil shipping routes.

As a result, global oil prices – a key component of jet fuel – has significantly increased.

Qantas' projected fuel cost in first half of 2026 was $2.6 billion.

Its projected fuel cost in the second half of 2026 is $3.1 - 3.3 billion.

Flight cuts

Qantas will temporary cancel 5% – or one in 20 – domestic flights across its Qantas and Jetstar networks.

The airline cited “continued volatility in fuel prices and the global economic conditions”.

Qantas told TDA the majority of the cuts will affect key routes between major capital cities in May and June.

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Some regional routes, however, will be suspended for up to five months, including:

Qantas

  • Melbourne to Hamilton Island; and
  • Melbourne to Coffs Harbour.

Jetstar

  • Sydney to Busselton; and
  • Darwin to Gold Coast.

Separately, Qantas confirmed that its Adelaide to Mount Gambier route will be indefinitely suspended due to a sustained decline in demand.

Response

The TWU warned the cuts could leave aviation workers facing reduced hours and job insecurity, including stand-downs or redundancies.

“We can’t keep seeing workers and passengers cop the biggest hit in times of crisis while CEOs walk away with millions when times are good,” McMillan said.

Transport Minister Catherine King said the Government is “engaging strongly” with the aviation sector on the fuel situation.

“We remain focused on securing our fuel supply and keeping Australia moving,” a spokesperson said.

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