Qantas Airways (QAN.AX) has announced it will increase fares across its international network this week, citing a sharp rise in jet fuel costs driven by the ongoing Middle East conflict, the airline confirmed on March 10.
The Australian national carrier said its European services were running to schedule and had reached occupancy rates exceeding 90% in March, a figure roughly 15 percentage points higher than the seasonal norm. The airline added it was looking at ways to put additional capacity onto its existing European routes over the coming months.
Passengers have been shifting travel patterns in response to regional airspace disruptions, with growing numbers opting to reach Europe via the United States, Asian hub cities and Johannesburg using partner airline connections, Qantas said.
Rival carrier Air New Zealand (AIR.NZ) made a similar move earlier on March 10, raising economy fares by $6 on domestic routes, $12 on short-haul international services and $53 on long-haul routes.
The Auckland-based airline said jet fuel had climbed from a pre-conflict range of $85-$90 per barrel to between $150 and $200 per barrel, and suspended its full-year 2026 financial guidance citing uncertainty over the duration of the conflict.
Fares on Asia-Europe routes have risen broadly as airspace closures across Iran, Iraq and parts of the Gulf have forced carriers onto longer alternative routings, tightening available capacity on key corridors.