Qantas Says Fuel Prices to Stay High Through FY27

The airline reaffirmed its first-half FY27 unit revenue growth guidance of 8-10% as it heads into its annual general meeting in Canberra.

Updated on Nov. 5, 2026 in Corporate Finance

Bold vector editorial illustration of a white fuel bowser hose connected to an unmarked jet wing on open tarmac, evoking airline fuel costs. — Qantas said on Monday that fuel prices will stay elevated through fiscal 2027, with about 85% of its fuel now hedged, as it reaffirmed 8-10% revenue growth guidance. AI Illustration. Upload story photo >

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Qantas said fuel prices are expected to remain elevated through FY27, with its first-half fuel cost now around $3.75 billion. The airline has extended its hedging, which now covers approximately 85% of FY27 fuel, and reaffirmed its first-half unit revenue growth guidance of 8-10%.

Why it matters

Sustained high fuel costs put pressure on airline margins, which Qantas is responding to by adjusting fares and capacity. Its hedging position and revenue guidance indicate how the carrier plans to offset those costs over the coming year.

Qantas has hedged approximately 85% of its FY27 fuel, predominantly in Brent crude oil, against a first-half fuel cost of around $3.75 billion. Expected first-half unit revenue growth of 8-10% across both domestic and international operations has not been tested against the fuel price path beyond FY27.

The players

Qantas

Qantas is Australia's largest international airline and the country's flag carrier, operating domestic and international passenger and freight services.

The details

Qantas has extended its fuel hedging for FY27, primarily using Brent crude oil contracts, and has adjusted fares and capacity in response to higher fuel costs. The airline reaffirmed guidance for first-half unit revenue growth of 8-10% in both its domestic and international groups.

August: Qantas originally provided its first-half unit revenue growth guidance.
FY27: Fuel prices are expected to remain elevated throughout the year.
5 November 2026: Qantas holds its annual general meeting in Canberra.

Market Dynamics

Qantas's reliance on Brent crude hedging shows how Australian carriers manage exposure to global oil benchmarks. Its roughly 85% hedge ratio for FY27 places it in a more protected position than an unhedged competitor facing the same elevated fuel prices.

Investors holding Qantas shares should weigh the airline's 85% hedge coverage for FY27 against the expectation that fuel prices remain elevated. Changes to fares and capacity may also affect ticket prices for travellers.

The takeaway

Airline margins depend heavily on how well fuel hedging and fare adjustments offset elevated costs. Qantas's first-half guidance and FY27 hedge position provide a clear measure to track as the year unfolds.