QANTAS FARES TO KEEP CLIMBING AS DOMESTIC FLIGHTS ARE CUT: WHAT IT MEANS FOR YOU
If you have been putting off booking that summer escape, now might be the moment to stop scrolling and start planning, because Qantas fares look set to keep climbing.
The airline group has warned it will keep adjusting fares and cutting back domestic flights as its fuel bill soars.
The news came in a Qantas Group market update released on Friday, November 6, ahead of its annual general meeting.
Why Qantas fares are under pressure
It all comes back to the cost of jet fuel.
Qantas now expects to spend about $3.75 billion on fuel in the six months to December 31, up from the $3.6 billion it forecast in August.
According to Travel Weekly, that is about $1.1 billion more than the same period last year, with the rise linked to the conflict in the Middle East.
The airline said in its statement that it "has and will continue to adjust fares and capacity" in response, as reported by Xinhua.
It also said fuel prices are expected to stay high right through the 2027 financial year, which runs to the end of next June.
Qantas has hedged about 85 per cent of its fuel needs for the year, which softens the blow but does not make it disappear.
Fewer domestic flights in early 2027
The bigger change for holidaymakers is the number of seats on offer.
Domestic capacity across Qantas and Jetstar will be about 4 per cent lower between January and March 2027 than a year earlier.
That is double the 2 per cent cut the airline flagged back in August.
A breakdown published by Travel PR News shows Qantas Domestic flying 5 per cent less in that quarter, and Jetstar Domestic 3 per cent less.
International flying, on the other hand, is still growing slightly, by around 1 to 2 per cent.
Qantas has not said which domestic routes will lose flights, or exactly how much ticket prices will rise.
It is expecting unit revenue on both domestic and international routes to grow by 8 to 10 per cent in the first half of the financial year.
Put simply, fewer seats and higher costs usually mean less wiggle room for bargain fares.
Is this the end of cheap Qantas fares?
Not necessarily, and demand for travel is still strong.
Qantas says domestic leisure travel is performing well, and international bookings are being helped by travellers steering away from the Middle East.
Aviation professor Rico Merkert told the Sydney Morning Herald, as reported by Travel Weekly, that the strategy showed "discipline rather than weakness".
In other words, the airline is choosing profitable flights over chasing every passenger with a rock-bottom price.
Smart ways to stay ahead of rising Qantas fares
The good news is there are a few simple habits that can help you keep your holiday budget on track.
Book early if your dates are fixed, particularly for school holidays and long weekends, when seats tend to go first.
Set up fare alerts on a comparison site so you hear about price drops and sales the moment they land.
Be flexible where you can, as flying midweek or at less popular times is often cheaper than a Friday evening getaway.
Compare airlines on your route, including Virgin Australia and regional carriers, rather than defaulting to your usual favourite.
If you have been stockpiling frequent flyer points, this could be a good time to use them, and Qantas has said it will run its Points Planes every month of 2027.
Keep your contact details up to date in your booking, so you hear quickly about any schedule changes.
Finally, read the fine print on fare types, as the cheapest ticket may not include checked bags or changes.
What happens next
Qantas will give its next big update with its half-year results in February 2027.
Until then, the message for travellers is simple: if you have your heart set on a particular trip in early 2027, it pays to lock it in sooner rather than later.
