Qantas has announced it is increasing the price of its international air fares amid oil price volatility caused by the war in the Middle East, while the airline also reported higher-than-normal ticket sales for flights to Europe.
While the company hedges against change in jet fuel prices, it was not fully covered for the spike seen in the wake of surging oil prices, a spokesperson said on Tuesday.
Qantas’s price hikes will differ in extent across its international routes, the spokesperson said, but did not provide further detail.
The conflict, catalysed by the US-Israel strike on Iran in late February, has disrupted flights around the world with major airports and airspaces affected across the Middle East – including Dubai, among the busiest international airports in the world and the official stopover for Emirates.
Qantas, which does not fly to the Middle East, has continued to operate flights as scheduled and reported seats rapidly filling up as some passengers from affected carriers rebook through the Australian airline.
Sign up: AU Breaking News email
Trips to and from Europe from April to June have 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 about 75% full.
The Perth-Rome seasonal service, which resumes in May, has also been in high demand, the spokesperson added.
Qantas said it was considering adding capacity to its Europe routes, which connect through the United States, Asia and South Africa.
While the airline reported jet fuel prices had driven up costs across the group, it did not say whether air fares would rise for Qantas domestic or Jetstar flights.
Virgin Australia, Qantas’s main competitor on domestic routes, has not announced price hikes 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 on Tuesday morning told investors profits would no longer be in line with expectations due to the spike in jet fuel costs.
Brent crude, the international benchmark for oil prices, surged as high as US$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 in the hours after the US president described the war on Iran as “very complete, pretty much” in an interview with CBS News.
About a fifth of global oil and seaborne gas tankers typically pass through the strait of Hormuz, next to Iran, which has already in effect been closed for a week.
