SYDNEY — Qantas and its low-cost carrier Jetstar are extending domestic flight reductions and trimming services to New Zealand as surging jet fuel prices triggered by Middle East disruptions continue to bite, with the airline group warning of up to AU$800 million in additional fuel costs this financial year.

The moves, announced this week, reflect broader industry pressure as oil prices remain elevated following disruptions in the Strait of Hormuz. Qantas said it would cut thousands more domestic seats in coming months while Jetstar is reducing trans-Tasman and internal New Zealand flights. The decisions aim to match capacity with demand while protecting profitability amid rising input costs.

Qantas CEO Vanessa Hudson cited the ongoing fuel crisis as a key factor. "We are taking decisive action to manage capacity in response to significantly higher fuel prices," she said in a statement. The group expects fuel costs to surge as much as AU$800 million higher than previously forecast, prompting route adjustments and fare reviews on some services.

Specific domestic cuts include suspension of flights from Melbourne to Hamilton Island and Melbourne to Coffs Harbour from mid-May to late June. Jetstar is halting Sydney to Busselton services until September and Darwin to Gold Coast routes until October. Trans-Tasman reductions affect about 12% of certain Auckland-Sydney and Auckland-Brisbane flights starting in........

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