Qantas slumps after flagging Q4 domestic capacity cut
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More news: Shares in Qantas Airways edged lower after the airline said it would reduce its domestic capacity by 5% in the fourth quarter and adjust international routes to mitigate elevated jet fuel prices.
The airline flagged fuel spending of between $3.1 billion and $3.3 billion for the six months to 30 June.
Shares had fallen 0.83% to $8.93 at 1:09pm AEST.
Qantas to cut domestic flight capacity by 5% in Q4 amid fuel price pressure
The news: Qantas Airways Group expects second-half international unit revenue growth (RASK) of 4% to 6%, while the domestic revenue is forecast to grow around 5% in the second half and 6% in the fourth quarter amid fare increases.
The context: Qantas is reducing domestic capacity by 5% in the fourth quarter and adjusting international routes and capacity to mitigate elevated jet fuel prices.
Qantas said it expects to spend between $3.1 billion and $3.3 billion for fuel in the six months to 30 June, an increase of around $600 million to $800 million in the second half of the year.
The group said it is well progressed with its FY27 funding plans, with FY26 capital expenditure expected to be at $4.1 billion, at the lower end of its previously guided range.
Amid ongoing economic uncertainty, Qantas has postponed its planned $150 million on-market buyback.
The source: ASX
