Qantas has announced it is raising the price of its international airfares amid oil price volatility caused by war in the Middle East, while the airline also reported higher-than-normal ticket sales for flights to Europe.
While the company hedges against changes in jet fuel prices, it was not fully covered for the increase seen in the wake of rising oil prices, a spokesperson said Tuesday.
Qantas’ price increases will differ in scope depending on its international routes, the spokesperson said, but did not provide further details.
The conflict, catalyzed by the US and Israeli attack on Iran in late February, has disrupted flights around the world and affected major airports and airspace across the Middle East, including Dubai, one of the world’s busiest international airports and the Emirates’ official stopover.
Qantas, which does not fly to the Middle East, has continued to operate flights as planned and has reported that seats are filling up quickly as some passengers on affected airlines rebook through the Australian airline.
Sign Up: AU Breaking News Email
Travel to and from Europe from April to June has seen a particular increase in recent weeks, according to the spokesperson, while routes such as Perth to London, Perth to Paris and services via Singapore were more than 90% full in March, up from a typical figure of around 75%.
The seasonal Perth-Rome service, which will resume in May, has also been in high demand, the spokesperson added.
Qantas said it was considering adding capacity to its European routes, which connect via the United States, Asia and South Africa.
While the airline reported that jet fuel prices had increased costs across the group, it did not say whether airfares would increase for domestic Qantas or Jetstar flights.
Virgin Australia, Qantas’ main competitor on domestic routes, had not announced price increases as of Tuesday evening.
Virgin has hedged to protect 85% of its fuel costs in the first six months of 2026 from price fluctuations, it reported in February.
The company is understood to be closely monitoring developments in the Middle East and assessing the implications of long-term fuel price increases.
Air New Zealand told investors on Tuesday morning that profits would no longer be in line with expectations due to rising jet fuel costs.
Brent crude, the international benchmark for oil prices, rose as high as $119.50 a barrel on Monday as the Middle East conflict intensified fears of a deepening energy supply crisis.
Brent fell to $91.58 a barrel hours after the US president described the war against Iran as “very complete, practically” in an interview with CBS News.
About a fifth of oil and gas tankers carrying oil and gas globally usually pass through the Strait of Hormuz, next to Iran, which has in fact already been closed for a week.
