Jetstar has apologised to customers after announcing temporary cuts to flights between Australia and New Zealand as a direct consequence of Middle East conflict driving up global jet fuel prices. The budget airline, owned by Qantas, said it had made some changes to its schedule in response to the soaring cost of fuel.
About 12% of Jetstar's scheduled services have been impacted, with affected routes including those between Auckland and Christchurch, Auckland and Wellington, Auckland and Sydney, and Auckland and Brisbane.
In a statement, a Jetstar New Zealand spokesperson said the airline had "made some temporary changes to our schedule, including due to a rise in jet fuel prices as a result of the conflict in the Middle East and other rising costs." The airline stressed that all impacted passengers have been contacted directly, and most have been offered same-day travel.
Jetstar is not alone in grappling with fuel pressures. Jet fuel prices have risen due to the war in Iran, disrupting international air travel. Airlines globally have faced extraordinary cost pressures. The average jet fuel price has nearly doubled since the conflict began, with little indication relief is on the way. Cathay Pacific, AirAsia and Thai Airways are among airlines increasing fares, with Cathay Pacific's chief executive saying the cost of fuel has doubled compared to the average of the previous two months.
Australia's consumer watchdog is keeping a close eye on how airlines respond to these cost pressures. The ACCC notes the Middle East plays a critical role in global aviation, with airline operations affected worldwide and potential for impacts to flow into Australia's domestic market. Major Australian airlines typically hedge a proportion of their fuel needs, which helps insulate them from short-term fuel price movements, but if jet fuel prices remain elevated for a prolonged period, airline costs may increase and this could ultimately lead to higher domestic airfares.
The ACCC has made clear it will scrutinise any misleading statements from airlines about their price increases. Airlines can change prices in response to demand, supply or input costs, but they must not make false or misleading statements about the reasons for any price increases. The ACCC said it is closely monitoring price movements, market behaviour and airlines' representations to consumers, and will act if there is behaviour that contravenes competition and consumer laws.
For travellers, the situation highlights a genuine tension. Airlines face real cost pressures from a disruption beyond their control. At the same time, Australia's relatively thin airline market dominated by two major groups means there is limited consumer choice, and the ACCC is right to ensure any fare increases reflect genuine costs rather than an opportunity to inflate profits. For now, Jetstar's cuts appear modest and targeted; the broader test will come if fuel prices remain elevated and airlines begin cutting services more aggressively, or if fares spike without clear justification.