Jetstar (Qantas-owned) has cut around 10–12% of its scheduled flights between Australia and New Zealand, with some impacts starting in May. This includes routes like Auckland–Sydney and Auckland–Brisbane. Some intra-New Zealand flights have also been reduced. Air New Zealand has slashed about 5% of its overall capacity (roughly 1,100 flights) from mid-March through early May 2026. Around 44,000 passengers are impacted.

Qantas (the main full-service carrier) has raised fares on international routes but has not yet cut flights due to fuel issues so far. It says it has secure fuel supplies for now. Virgin Australia has also increased fares in response to the fuel spike.

Jet fuel prices have roughly doubled (from ~US$85–90 per barrel to $150–200+) due to the ongoing conflict in the Middle East, which has disrupted oil supplies and shipping routes. Airlines worldwide are responding with fare hikes, schedule tweaks, and in some cases capacity cuts to manage costs.

The worst is yet to come…

janus