Qantas Airways Limited Maintains High Fares Amid US-Iran Fuel Shock

Qantas Airways Limited is maintaining high ticket prices for international flights, specifically routes to Europe, despite a recent decline in Australian petrol prices. Chief Financial Officer Rob Marcolina reported a fuel shock costing the airline between $600 million and $800 million, as jet fuel prices remain 60 percent higher than pre-conflict baselines.

The price volatility stems from the ongoing conflict between the United States and Iran, which has damaged oil production and led to blockades of the Strait of Hormuz. Marcolina stated that supply chains would likely require three to four months to normalize even if the conflict ended immediately, necessitating elevated capacity pricing into fiscal year 2027.

To address long-term efficiency and risk, the airline plans to retire its A380 fleet by the early 2030s and is currently coordinating with Airbus SE for replacement aircraft. Qantas Airways Limited also noted that a reduction in foreign carrier capacity within Australia has provided a temporary buffer for its fuel supply.