Qantas is pushing up fares and making deeper cuts to scheduled flights in Australia to offset months of higher fuel costs.
A sustained increase in fuel prices means Qantas needs to “rebalance capacity and fares,” the airline said on Thursday.
Domestic services in July and August will fall to 103% of pre-Covid levels from 107%. Qantas had already cut flying in Australia next quarter to 110% of pre-pandemic volumes from a planned 115%.
However, the airline didn’t elaborate on airfare changes.
Russia’s invasion of Ukraine has sent oil prices soaring, with crude above US$100 a barrel for the majority of the time since early March.
Cutting flights means Qantas can fill more of the seats on its remaining services, driving up revenue on those routes without buying much additional fuel.
Every US$4 jump in the oil price adds 1% to air fares, Qantas has said.
Qantas enjoyed a boom in domestic travel across late 2021-early 2022 as state border restrictions dropped while uncertainly remained over many international destinations, along with abnormally high prices on overseas routes.
However, many international destinations remain off the card for now. Qantas has several times pushed back the restart of flights to San Francisco, which now are now earmarked for October 2022, while ongoing restrictions in Japan and Hong Kong continue to frustrate the carrier.
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