Australia’s Qantas warns jet fuel price surge could add up to $800 million to costs, driven by Middle East conflict and volatile global supply chains.
SYDNEY: Surging jet fuel prices could increase costs for Australia’s Qantas by up to Aus$800 million (US$570 million) in the second half of this year. The airline issued the warning in a market update, citing extreme price volatility.
War in the Middle East has caused jet fuel prices to more than double. The carrier stated these prices remain “extremely volatile”.
The forecast cost for jet fuel in the second half of 2026 is now Aus$3.1 billion to Aus$3.3 billion. This is a significant increase from its previous forecast of Aus$2.5 billion.
Qantas said it is working with the Australian government and fuel suppliers. These suppliers are confident in fuel supply for the rest of April and well into May.
“We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains,” the airline group said.
