Qantas cuts capacity, hints at fare rise in response to fuel prices
Rising fuel prices and lower demand have pushed Qantas to cut domestic capacity and increase prices from July.
The airline said it would cut capacity from 107 per cent of pre-COVID levels to 103 per cent, despite strong demand across all domestic categories.
In an industry update on Thursday, Qantas cited rising fuel prices over the past month for the cuts and said it would need to rebalance both capacity and fares.
Customers will not be financially impacted, according to Qantas, due to a large number of flights on most routes, and those impacted will be contacted directly by the airline and offered different options.
Qantas is the first Aussies airline to announce capacity cuts due to rising fuel prices as a result of the situation in Ukraine.
Virgin Australia boss Jayne Hrdlicka revealed Virgin was operating at a higher capacity than its pre-pandemic levels and it is factoring in the higher fuel costs in its scheduled planning, according to the Financial Review.
Rex told the Daily Advertiser in Wagga Wagga it was in the process of reviewing its entire regional network.
Qantas said its international capacity will not be impacted and will remain at just under 50 per cent of pre-COVID levels by the end of the fourth quarter of FY22 and rise to around 70 per cent by the end of the first quarter of FY23.
The airline resumed its Perth to London service on 23 May, with one return flight per day operating through the Western Australian gateway after operating through Darwin since November last year.
Qantas will reroute its Sydney-Darwin-London service to operate Sydney-Singapore-London from 19 June, and switch from a 787 back to an Airbus A380 service.
Trans-Tasman travel is on the rise for the Kangaroo carrier, with flights resuming from Australia to Queenstown and Wellington, plus additional routes to Christchurch and twice as many flights to Auckland from Melbourne and Sydney.
Jetstar too has restarted New Zealand flights, bringing back all services between Australia and Auckland, with remaining Christchurch, Queenstown and Wellington markets in the next few weeks.
A third A380 will also be brought out of storage, returning to service from 6 June to operate Qantas’ Melbourne-Los Angeles route.
With Japan travel set to restart in the coming months, Jetstar will resume flights from Cairns-Tokyo (Narita) from 20 July and Cairns-Osaka from 26 July, and Qantas will resume Sydney-Tokyo (Haneda) services from 12 September, and from Melbourne and Brisbane to Tokyo (Haneda) from the end of October, using A330s.
Bali is also in seeing strong demand, prompting Jetstar to restart direct services from all seven Australian cities it flew from pre-COVID and will be close to pre-COVID levels of capacity on the majority of routes by the end of June 2022.
Qantas also announced it would increase frequency between Sydney and Manila from five flights per week to six from 20 June increasing to daily from mid-September and will resume flights from Sydney to Santiago from 30 October, with four flights per week using its 787s.
However, the airline has pushed back the restart of flights between Sydney and San Francisco from 30 July to 30 October, accommodating customers on flights via Los Angeles.
Qantas previously announced it will start a seasonal Perth-Rome service from 22 June, flights from Sydney to Bengaluru (Bangalore) from 14 September and flights from Melbourne to Dallas Fort Worth from 2 December.
The national carrier joins the likes of Delta and British Airways who also recently announced capacity cuts, citing rising fuel prices and staffing issues flight demand in the US and UK continues to soar.
Image source: iStock/Christopher Malek
Latest News
Travel Weekly announces a new team to helm Australia’s No.1 travel trade title
Some shameless self-promotion from us, but we thought you needed to know who's bringing you the news.
IHG reveals plans for Brisbane’s first Kimpton in 2028
Just another reason to book that trip to Brisvegas. But don't jump the gun, it's not open until 2028.
Cruiseabout’s first store in five years opens in Perth
Perth gets a break from being behind the rest of the country with the addition of the first Cruiseabout store.
ATAS complaints process acknowledges non-economic loss
A High Court case win over 'disappointment and distress' on a cruise gone wrong prompts ATIA complaints change.
Cunard previews new Queen Anne
Yep, this one does exactly what it says on the tin.
Bunnik Tours unveils latest expansion to Iceland
Just as the Icelandic vikings did many years ago, Bunnik is expanding into new territories.
Australia’s first glamping retreat turns 25
25th anniversary gifts usually come in silver. Ours comes in the way of a news story.
Embrace the journey: Traversing the world with the Shokz OpenRun
If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]
Tourism Western Australia MD Carolyn Turnbull departs
Turnbull hints her new role will see her staying in the tourism and hospitality industry and who can blame her?
DriveAway launches Brit-Euro Blitz campaign
If agents can put the foot down quick enough and get involved, there are some great prizes to be won.
Fly and Stay Free with the Great Southern
Unlike those dodgy scam phone calls you're getting more and more of, there's no strings attached to this deal.
Sober travel and TikTok guide Australian Gen Z trips
Can you call it a sober holiday if you enjoy a few glasses of red on the flight? We think yes.
Travel DAZE Exec Agenda REVEALED: top execs to speak on airline competition
As the industry reels from Bonza's implosion, it is more important than ever to ask the big questions.
TTC: Deals are driving up demand for September trips
The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]
Skroo says Rex will need deep pockets to fill lost Bonza slots
The door is open for Rex, and anyone else who wants to launch a regional Aussie airline...
Sno’n’Ski Holidays unveils 2025 mega famil to Colorado!
Let the games begin - this is certainly not a famil that you will want to miss!
Walk Japan launches Kyoto: Mountains to the sea walking tour
There are two types of people, one who enjoys walking on holiday and another who enjoys sipping Mojitos by the pool.
Which destination had a 48% boost in bookings following 10 MILLION TikTok views?
Here's a clue: it's not Malabar Beach.
Asher Telford appointed General Manager of SeaLink Whitsundays
Telford has plenty of reasons to smile after SeaLink doubles down and makes him GM after buying his tourism operation.
Qantas ‘working urgently’ to fix app data leak
Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]
Hilton Expands Presence in North Queensland with the signing of Hilton Garden Inn Townsville
Heading to a North Queensland Cowboys clash? Hilton Garden Inn Townsville is set to open, but not until 2026.
Rail Europe ANZ: making dream journeys come true
Rail Europe's running a lottery! You're not going to win millions, but you might just snag a free holiday.
Bonza’s future on knife edge
It would seem a long road back from here, perhaps a knife's edge is too much credit.
Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa
Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]
Nielsen Data reveals brands spending big to attract Aussie tourists
Trip A Deal, Virgin and Ignite Travel walk into a bar, blow their cash on travel advertising instead of the pokies.
Kamalaya Koh Samui clinches clutch of wellness awards
Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]
Jetstar offers 200,000 return for free flights to celebrate 20th anniversary
Jetstar hits 20 and everyone else gets the presents with free return flights to domestic and international destinations.
Amora Hotels & Resorts set to double APAC portfolio, announces new Sydney office
Staff in the new Sydney office have been welcomed by a week of rain on the forecast.
RIU opens Chicago hotel and rooftop bar a few steps from the world-famous Magnificent Mile
Rooftop cocktails hold a dear place in your heart? Look no further than RIU Chicago.
How can travel agents best sell cruises? Uniworld’s Alice Ager tells all: Travel Weekly TV
Agents, you don't want to miss this. Yes, that's the case with everything in the newsletter, but we really mean it here!
South Africa bookings are back in action
It's a wrap! South Africa in the news with resumed flights, film fest and booking tech.
Agents’ chance to score free spot on Intrepid trip to Antarctica
This is the trip of a lifetime, even if you are scared of the cold!
Bonza nosediving amid mass cancellations and reports of repossessed planes
Bonza's days appear to be numbered as the low-cost carrier today announced mass cancellations around the country.
Amy Poehler joins Vivid Sydney event
Oh Joy! Hit comedian Amy Poehler will make an emotional appearance at the Sydney Opera House for Vivid.
Pullman Sydney Penrith ties up with Trilogy Hotels, announces new GM
The crew from Trilogy hotels doing their best impression of the Penrith front row here.
Linkd appoints Carolyn Nightingale and Lawson Dibb to new roles
Linkd Tourism sings praises of Carolyn Nightingale and dubs Lawson Dibb as Kyushu Tourism Office guru.