Qantas has announced an increase in international air fares, citing oil price volatility stemming from the ongoing conflict in the Middle East. The airline also reported a surge in ticket sales for European routes in March, driven by passengers rebooking from carriers affected by flight disruptions.
A Qantas spokesperson said the company was not fully hedged against the recent spike in jet fuel prices, and that the extent of the fare increases would vary across international routes. The conflict, sparked by a US-Israel strike on Iran in late February, has caused widespread disruption to flights and airports across the region.
Although Qantas does not operate flights to the Middle East, it has seen strong demand on European services. Routes such as Perth to London, Perth to Paris, and those via Singapore were more than 90 per cent full in March, up from the typical 75 per cent. The seasonal Perth-Rome route, which resumes in May, has also seen high demand.
The airline is considering adding capacity to its European network, which connects through the United States, Asia and South Africa. However, Qantas did not indicate whether domestic or Jetstar fares would be affected. Rival Virgin Australia has not announced price hikes and has hedged 85 per cent of its fuel costs for the first half of 2026.
Air New Zealand warned on Tuesday that its profits would be lower than expected due to rising jet fuel costs. Brent crude surged to US$119.50 a barrel on Monday before falling to $91.58. The Strait of Hormuz, through which about a fifth of global oil and gas tankers pass, has been effectively closed for a week.
