Qantas lifts fuel forecast to A$3.75bn

Qantas raised its forecast first-half FY27 fuel bill by A$150 million to about A$3.75 billion, citing elevated fuel prices expected to persist through the financial year. The airline said it has hedged about 85% of its FY27 fuel needs, mainly against Brent crude, and is responding to higher costs with fare and capacity adjustments. It maintained guidance for 8% to 10% growth in first-half unit revenue across both domestic and international operations, saying demand remains resilient. International demand is strong, in part as travelers redirect trips away from the Middle East, while domestic leisure demand remains firm and non-resources corporate and government travel is stable. Qantas also expects FY27 net capital expenditure at the lower end of its A$4.3 billion to A$4.6 billion range.