Qantas has flagged a blowout in fuel expenses, up to $800 million, from the oil price shock caused by the US-Israel war with Iran which analysts expect will create a sizeable hole in the companyโs profits.
Its second half fuel bill is now anticipated to be $600-$800 million more than previously announced, at about $3.1 billion to 3.3 billion, the company said in a market update.
The airline has redeployed larger aircraft from North American routes onto routes flying to Singapore, in an effort to meet demand as Persian Gulf carriers are dramatically disrupted by the conflict.
Demand for international flights to Europe that avoid the Middle East has helped raise the airlineโs expected international revenue growth to about 4 to 6 per cent, double previous guidance.
However, the increase in Qantasโ international revenue is not enough to offset the costs linked to fuel, the company said.
Analysts now expect Qantasโ full-year profit to take a $400-$500 million hit.
More to come
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Chris Zappone is a senior reporter covering aviation and business. He is former digital foreign editor.Connect via X, Facebook or email.
