Four routes suspended, capacity cut five per cent as Iran war sends jet fuel costs soaring.

Australia’s largest airline has cut domestic capacity and suspended four routes amid a fuel cost blowout that could add up to $800 million to the Qantas Group’s bills. Qantas Group is scaling back its planned domestic capacity expansion by five per cent in the April–June quarter, shifting more flights to Europe in response to rising fuel costs sparked by the Iran conflict.

The cuts hit both the Qantas mainline and budget subsidiary Jetstar, with four routes temporarily suspended and frequency reductions rolling across the broader network from 18 May.

Which routes are affected?

Qantas spokesperson Stephanie Maguire told Australian Traveller the reductions are spread across the network, but the big trunk routes between capital cities bear the brunt of the cuts.

“The majority of the capacity reductions come from the key trunk routes – between major capital cities – where we fly larger aircraft and generally have higher frequencies, though the reductions are across the board, including regional routes," Maguire said.

Four routes have been fully suspended for now:

Qantas:

• Melbourne–Hamilton Island: suspended 18 May to 28 June
• Melbourne–Coffs Harbour: suspended 18 May to 14 June

Jetstar:

• Sydney–Busselton: suspended 18 May to 22 September
• Darwin–Gold Coast: suspended 18 May to 12 October

Maguire said the airline had tried to soften the impact where possible. “Where possible, we’ve taken capacity out at off-peak times to help minimise the impact on customers."

One route is gone indefinitely

Beyond the temporary suspensions, one route has been axed entirely. Qantas has indefinitely suspended its Adelaide–Mount Gambier service from 18 May.

“While the recent increase in fuel prices has made the situation more difficult, we have seen sustained declining demand, meaning the route is no longer viable for us to continue operating. Many recent flights have operated less than 20 per cent full," Maguire said

Mount Gambier residents won’t be stranded, though – the route continues to be serviced by Rex Airlines.

Why is this happening?

Jet fuel prices have “more than doubled and remain highly volatile" since Qantas issued its first-half financial results. Qantas has covered roughly 90 per cent of its crude oil exposure through hedging, but the full numbers reflect a problem that hedging can’t fully solve – the airline has almost no protection against the cost of refining that crude into usable jet fuel.

The result: estimated fuel costs for the second half of FY26 are now $3.1–3.3 billion.

Where are the planes going instead?

While domestic routes are being wound back, Qantas is actually expanding elsewhere. The group has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome, chasing stronger yields as global travel patterns shift. Qantas continues to see strong demand for international travel to Europe as customers seek alternative routes avoiding the Middle East.

What if you’re already booked?

If you have a ticket on one of the suspended routes, you’re not stuck. Maguire confirmed: “Impacted customers are being offered refunds or alternative flights."

Anyone booked on affected services should expect to hear from Qantas or Jetstar directly – but it’s worth proactively checking your booking if your flight falls within the suspension windows.

Are more cuts coming?

Qantas says it is “closely monitoring the situation" given ongoing uncertainty in global fuel supply chains, and the group is working with the government and jet fuel suppliers who continue to provide confidence in fuel supply for the remainder of April and well into May.

For now, travellers booking domestic flights – especially on regional or leisure routes – should keep a close eye on their itineraries as the airline continues to manage one of its most challenging cost environments in years.