Qantas Group has reduced its domestic capacity for April to June 2026 by about 5 percentage points due to fuel price volatility and global economic conditions, the company said in a market update on April 14, 2026.

The airline estimated its fuel costs for the January-June 2026 period at between AUD3.1 billion Australian dollars (USD2.2 billion) and AUD3.3 billion (USD2.4 billion). Qantas has hedged 90% of its crude oil exposure for the period but remains significantly exposed to refining margins, which increased to a peak of USD120 per barrel from USD20 in February.

"The group has taken action to mitigate the impact of the conflict in the Middle East, including international network changes, capacity adjustments, and fare increases," the company said.

Qantas is also redeploying capacity from the United States and its domestic network to add flights to Paris CDG and Rome Fiumicino as demand for travel to Europe remains strong.

International revenue growth for January to June 2026 is projected at 4-6%, double its previous guidance. Domestic revenue is expected to grow by about 5% over the same period. Group-wide capacity for the 12 months ending June 30, 2026, is projected to increase by 3%.

The airline will also defer a planned AUD150 million Australian dollar (USD107 million) on-market share buyback due to the uncertainty. However, the group will proceed with its AUD300 million (USD215 million) interim dividend payment on April 15, 2026.

Capital expenditure for the 12 months ending June 30, 2026, is now expected to be at or below AUD4.1 billion (USD2.9 billion), the bottom end of its previous guidance.