Virgin Australia cuts domestic flights amid rising fuel costs

Sydney, April 15 (IANS) Virgin Australia said on Wednesday it will reduce flights in the current quarter and flagged increased fares to offset higher jet fuel costs.

In an update to the Australian Securities Exchange (ASX), Virgin Australia said that its fuel costs in the second half of 2026 are expected to be up to 40 million Australian dollars (about 28.5 million US dollars), higher than previously forecast, as a result of a surge in oil prices driven by the conflict in the Middle East, reports Xinhua news agency.

"The price of jet fuel has been extremely volatile and has more than doubled since the end of February 2026," it said.

The airline, in which Qatar Airways has a 25 per cent stake, said that it would increase fuel hedging in the short term to "mitigate price volatility" and implement other operational levers, including fare and capacity adjustments.

It said that its total domestic capacity would be cut by 1 per cent in the current June quarter.

The announcement followed a similar update from the Qantas Group on Tuesday, in which it flagged a hit of up to 800 million AUD (about 570.3 million USD) from higher fuel costs and said that it has reduced domestic capacity by 5 percentage points in the fourth quarter of 2026.

Earlier on April 10, Singapore and Australia pledged closer coordination to strengthen economic resilience and safeguard the flow of essential supplies amid disruptions stemming from the ongoing Middle East crisis.

In a joint statement, Singapore Prime Minister Lawrence Wong and visiting Australian Prime Minister Anthony Albanese underscored the strategic role each country plays in the other's energy security.

"Singapore is one of Australia's top suppliers of refined petroleum products, and Australia is one of Singapore's top suppliers of liquefied natural gas (LNG)," they said.

Building on a previous joint statement on energy security, the leaders said both governments would make "maximum efforts" to meet each other's energy needs amid volatility in global energy markets.

They also reaffirmed commitments to keep essential goods flowing, including petroleum products such as diesel and LNG, and agreed to step up cooperation to facilitate the timely movement of these supplies.

The two countries also underscored the importance of maintaining a rules-based multilateral trading system, particularly during periods of global uncertainty.