Qantas CEO says airline has ‘pretty good’ fuel hedging, monitoring price spikes

2026-03-03 - 02:14

Qantas remained unaffected by regional cancellations but is helping to communicate with Emirates customers affected by disruptions. (EPA Images pic) SYDNEY: Qantas Airways CEO Vanessa Hudson said on Tuesday that the airline had “pretty good” fuel hedging in place but the spike in oil prices amid the conflict between the US, Israel and Iran was significant for the aviation industry. “We’ve got pretty good hedging in place, but these are pretty significant impacts on aviation and we’re just continuing to watch how it all unfolds,” she said at the Australian Financial Review’s business summit as the airline’s shares fell for a second day, trading as much as 3.9% lower. Major Gulf hubs, including the world’s busiest international airport, Dubai, which usually handles over 1,000 flights a day, remained closed for a fourth day due to the conflict. That has left tens of thousands of passengers stranded as aviation faced its biggest test since the Covid-19 pandemic. Qantas does not use airports in the Middle East so was not directly affected by flight cancellations as the conflict in the region prompted governments to close airspace, but it was helping communicate with passengers of partner airline Emirates who were trying to travel to or from the region, Hudson said. The Australian carrier said last week that it had 81% of its fuel hedged for the second half of its financial year ending June 30 and it hedged over a rolling 24-month period. It estimated its second-half fuel bill at A$2.5 billion (US$1.77 billion), including hedging and carbon costs. Japan Airlines’ chief financial officer, Yuji Saito, said on Monday the carrier planned to adjust its fuel surcharge for international flights but did not provide a timeframe. In the domestic market, “since there is no surcharge, we’re offsetting part of the price spike through hedging,” he told reporters. Japan Airlines shares were down 3.5% in early trading on Tuesday. The CEO of Australia’s biggest investment bank Macquarie Group, Shemara Wikramanayake, said on Tuesday the conflict appeared likely to affect the availability of oil, as well as the cost. “There is going to be a deliverability issue there,” said Wikramanayake, whose company is one of the world’s largest traders of oil and gas.