Qantas Extends Schedule Changes and Cuts Domestic Capacity
Synopsis
Qantas has extended its international and domestic schedule changes through September, citing the Middle East conflict, high fuel costs, and strong European travel demand. Additional Perth-Rome flights have been extended until the end of October, while Paris services will run three times weekly from August via Singapore. The Sydney-Bengaluru route will be suspended from August to October. Domestic capacity has been cut by 5 percentage points through September — extended from the original June end date. Qantas and Jetstar have also reduced trans-Tasman capacity. Qantas shares rose 1.4% to A$8.53 in early Friday trade.
Qantas has confirmed its schedule changes until September, maintaining a strong focus on Europe routes with high demand, while cutting domestic and trans-Tasman routes where profitability is under pressure due to soaring fuel costs.
Key Highlights
- Qantas has further extended schedule changes across its international network.
- Perth-Rome flights have also been extended to the end of October for a further three months.
- Routes like Sydney-Bengaluru which are only suspended until August will resume at the end of October.
- Domestic capacity cuts of 5% points have been extended until the end of September, from June before.
- Qantas shares opened as much as 1.4% higher at A$8.53 in early trade on Friday.
Qantas forges more flights to Europe, fewer domestically
Qantas announced its schedule changes across both international and domestic networks will continue until September. It is due to ongoing concern over the Middle East battle, rising fuel costs further, and demand for travel well above pre-COVID levels into Europe. Further Perth-Rome flights introduced as part of previous schedule changes have been extended for an extra three months through to the end of October.
Paris flights will return to three return services per week from August, as scheduled, but retain their Sydney-via-Singapore routing. These changes will bring the integration of Qantas Group’s international capacity for the first quarter of fiscal 2027, with an impact by 2% points in line with original capacity plans.
Domestic and Trans-Tasmanian routes are taking a hit
Europe is getting all the attention, with Qantas and Jetstar cutting back elsewhere. The local capacity cut of 5%, revealed earlier for the June quarter, continues until the end of September. The trans-Tasman routes are already under pressure from sharp rises (October 2023) in fuel costs. Earlier Jetstar announced cuts in May, while Qantas has also reduced capacity across the Tasman. The Sydney-Bengaluru route will be grounded again from August to the end of October, when costs are high and the partnership admits there is more profitable flying available.
The strategy: Go where the money is
Throughout the fuel crisis, Qantas has outlined its logic. Crude oil prices are increasing because of conflict in the Middle East and the airline is working to get its aircraft where yields are highest, and at present that’s Europe. Australian travellers are chasing seats as Gulf hub closures cut off Dubai, Doha and Abu Dhabi transit solutions.
Prices on European routes have soared, and demand is strong. At the same time, customers are feeling the pinch through fewer choices and higher prices, yet Qantas shares headed up 1.4% to A$8.53 in early trade on Friday suggesting most investors were happy enough with the approach
FAQs
- What routes are seeing an increase in flights?
Europe has been extended until 30th October between Perth & Rome. For Paris, the services continue for three return flights per week from August through Singapore.
- Why is Qantas prioritising Europe?
Gulf hub closures have led to strong demand for alternative Europe routes. To counter high fuel prices, Qantas is redirecting capacity to the markets with the highest demand and fares.
- What has been the cut in capacity domestically?
At 5% points, a cut initially intended to end by June, which has been extended through the end of September.
- How did Qantas shares react?
On Friday, the shares rose as much as 1.4% to A$8.53 in early trade.
Follow Inspirepreneur Magazine for daily global business news.
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
You Might Also Like
Intel Stock Rebounds Amid Apollo Investment Buzz
UK Consumer Spending Rises in March Despite Global Economic Uncertainty
