Qantas flags A$3.6bn fuel bill, trims domestic capacity
Qantas expects A$3.6bn fuel costs in 1H FY27, trims domestic capacity 3%, and outlines fleet and loyalty growth plans.
Qantas Airways has signalled that jet fuel prices will remain elevated through the first half of fiscal 2027, with fuel costs expected to reach approximately A$3.6 billion. The carrier ended the financial year with A$13.3 billion in liquidity, while net debt rose to A$6.2 billion as of end-June 2026.
To counter ongoing cost pressures, the airline said it will lean on its transformation programme. It also expects group domestic total unit revenue to climb 8–10 per cent in the first half of FY27, while group international total revenue per available seat kilometre (TRASK) is projected to rise 8–10 per cent over the same period.
Capacity plans diverge by market: domestic capacity is set to fall 3 per cent in 1H27, while international capacity is expected to grow 2 per cent. The airline noted that international demand across both Qantas and Jetstar remains strong, and domestic demand is tracking broadly in line with the fourth quarter of FY26.
On the fleet front, Qantas will incur roughly A$165 million in entry-into-service costs for new aircraft during FY27. Capital expenditure for the year is guided at A$4.3–4.6 billion. The group holds firm orders for 12 A350s and 12 787s for international and freight operations, in addition to the 12 Project Sunrise aircraft. It is also in discussions with Airbus and Boeing to convert around 20 existing purchase-right options into firm orders from 2030.
The airline also announced that it has agreed revised commercial terms and extended agreements with its largest credit card partners across banking and financial services. Qantas Loyalty's underlying EBIT is forecast to grow 5–7 per cent in FY27.
In a separate note, Qantas said it will begin direct flights from Sydney to Las Vegas this year.