Qantas sells two million seats as fuel worries grow

Qantas Launches Mega-Sale with Fares Starting at $99

Qantas has introduced a massive sale offering over two million fares starting from just $99, even as concerns about jet fuel supply and rising price volatility continue to grow. The week-long promotion, which began at midnight on Tuesday, covers 90 domestic routes across Australia, locking in travel options through to March 2027. This bold move comes at a time when airlines are facing global instability.

The discounted fares include peak travel periods such as the June long weekend and winter school holidays. Qantas Domestic chief executive Markus Svensson explained that the sale was designed to meet the increasing demand for domestic travel among Australians. “We’ve had a bumper Easter holiday with more than a million customers traveling across our domestic network, and this sale is timed for those planning their next destination,” he said.

The sale features millions of discounted seats across more than 90 routes, including popular holiday spots like tropical beaches, beloved regional towns, and city escapes.

Virgin Australia Joins the Sale

Virgin Australia also launched a sale on Monday as competition in domestic airfares intensifies. The airline has reduced half a million airfares, starting from $55 for one-way flights to Sydney, Byron Bay, and Newcastle. The sale will run until April 26 for flights scheduled between May 19 and December 16, 2026.

Industry Concerns and Risks

University of Sydney Business School professor Rico Merkert suggested that Qantas and Virgin may be trying to maximize revenue from their core domestic networks. However, he warned that this strategy could become risky if the war in the Middle East escalates. He noted that jet fuel availability, not just price volatility, could become a serious constraint, potentially leading to more flight cancellations.

“If they have to cancel international flights and pause or reduce some unviable regional flights, they need to compensate for that loss in cash flow somewhere,” he said. “Getting their core routes closer to full load factors will help with that. Selling each and every seat on those flights will also help with the increased fuel cost of operating them.”

Meanwhile, foreign airlines are already cancelling flights and reducing services to Australia due to fears of further disruption if the fuel shock from the US-Israel conflict with Iran remains unresolved by May.

Impact on International Flights

Fiji Airways recently announced it would pause some services to Australia and the US because of high fuel prices and market uncertainty. International Air Transport Association director-general Willie Walsh has warned passengers to expect flight cancellations during the May half-term holidays as flight disruptions spread from Asia to Europe.

“We have also estimated that by the end of May, we could start to see some cancellations in Europe for lack of jet fuel,” he said. “This is already happening in parts of Asia.”

Aviation specialist Sally Gethin highlighted that the scale of the impact on air passengers will depend on how long the Strait remains closed. “Even if it opens, you’d still need time for the jet fuel supplies to start up again,” she told the Daily Mail. “So the best case scenario would be fares going up and some routes being cancelled. The worst case scenario is if this carries on for six to eight weeks and the shortages start really biting. This could pose an existential crisis to airlines – even if they slap on fuel surcharges they still won’t recoup the cost. You could be looking at tens of thousands, potentially hundreds of thousands, of flights being cancelled globally.”