Qantas Expects About A$3.75 Billion Fuel Cost in First Half of FY27
Qantas Airways says about 85% of its FY27 fuel is hedged and expects 1H27 fuel costs near A$3.75 billion, with fuel prices staying elevated, per Reuters.
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what happened
Qantas Airways said about 85% of its fuel requirement for FY27 is hedged. The airline expects fuel costs of roughly A$3.75 billion for the first half of the 2027 financial year and says fuel prices will remain elevated throughout FY27.
The company also expects FY27 net capital expenditure to come in at the lower end of its A$4.3 to A$4.6 billion range. Group domestic and international trans-Tasman-style capacity, measured as ASKs, is each forecast to rise 8 to 10 percent in 1H27, while second-quarter domestic capacity is seen falling 5 percent. Qantas Loyalty remains on track for underlying EBIT growth of 5 to 7 percent in FY27. The airline continues to adjust fares and capacity in response to higher fuel costs.
why it matters
For markets, this signals that fuel remains a sustained pressure on airline costs, so sector margins will depend heavily on fares and load factors. The 85% hedge ratio cushions Qantas from the immediate impact of current fuel prices.
market impact
Airlines and fuel markets: elevated fuel prices pressure airline margins
- Jet fuel mixed — strong fuel demand from carriers supports the market, but higher costs limit airline consumption
tags
instruments
on polymarket
sources
- Qantas Airways Expects 1H27 Fuel Cost Of About A$3.75 BLN — Reuters, 6 November 2026 at 01:51 UTC
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