Finance
Qantas hikes fares on international routes as fuel costs surge on mideast conflict
Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: March 10, 2026
Quick Summary
Qantas announced international fare hikes this week to offset surging jet‑fuel expenses driven by the escalating U.S.–Israeli war on Iran, while exploring increased capacity to Europe amid heightened demand.
Qantas Raises International Fares As Fuel Costs Surge Over Middle East Conflict
Qantas Responds to Rising Fuel Costs and Market Disruptions
International Fare Hikes Announced
March 10 (Reuters) - Qantas Airways said on Tuesday it would hike fares on its international routes this week in response to the surge in jet fuel costs due to the conflict in the Middle East.
Capacity Adjustments and Route Planning
Potential Expansion on Europe Routes
The Australian flag carrier also said in a statement that it was considering adding capacity on its existing Europe routes in the coming months.
Impact of Middle East Conflict on Oil Prices
The U.S.-Israeli war on Iran has sent oil prices surging, upending global travel and sparking fears of a deep travel slump and the potential for the widespread grounding of planes.
Wider Industry Effects
Airfare Increases and Capacity Constraints
Airfares on Asia-Europe routes have already spiked due to airspace closures and capacity constraints.
Competitor Responses
Air New Zealand's Ticket Price Increases
Air New Zealand, Qantas's rival, also announced earlier in the day broad increases to ticket prices, one of the first airlines to do so since the start of the war.
Current Operations and Customer Trends
High Load Factors on European Routes
Qantas said in an emailed statement to Reuters that flights on its European routes were operating as scheduled and were more than 90% full in March, about 15 percentage points above typical levels for this time of year.
Alternative Travel Routes and Partnerships
"More customers have also been choosing to travel to Europe via the United States, other Asian cities, and Johannesburg, connecting through Qantas' partner airline network," Qantas said.
"We are exploring options to redeploy capacity into Europe on existing routes in the coming months."
(Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich)
Key Takeaways
- •Qantas is raising international fares due to sharply rising jet‑fuel costs tied to the Middle East conflict and disrupted oil supply chains (e.g., through the Strait of Hormuz).
- •Oil prices have spiked dramatically—Brent and U.S. crude surged 8–20%, briefly topping $100/barrel—driven by attacks on energy infrastructure and shipping bottlenecks. This surge is fueling airline pricing actions.
- •Passenger demand to Europe remains strong, with Qantas reporting >90% load factors in March; the airline may add capacity on Europe routes to capitalize on alternate routing via partner networks.
Frequently Asked Questions about Qantas hikes fares on international routes as fuel costs surge on Mideast conflict
1Why is Qantas increasing fares on international routes?
Qantas is raising international fares due to a surge in jet fuel costs caused by the ongoing conflict in the Middle East.
2What effect has the Middle East conflict had on airline costs?
The conflict has caused oil prices to surge, increasing jet fuel costs and leading to higher airfares and potential travel disruptions.
3Are Qantas flights to Europe operating normally?
Yes, Qantas states that its flights to Europe are operating as scheduled and are currently more than 90% full.
4How are travelers responding to increased fares and restricted routes?
Many customers are choosing alternative routes to Europe, such as via the United States, Asian cities, or Johannesburg, leveraging partner airlines.
5Have other airlines increased ticket prices as well?
Yes, Air New Zealand also announced broad increases to ticket prices, joining Qantas in responding to higher fuel costs.
