March 20, 2026, 10:52 AEDT – Sydney
- Qantas wrapped up trading at A$8.43 on March 19, marking a 1.1% drop from its previous finish and ending roughly 3.4% under the day’s open.
- The stock is still feeling the squeeze, with rising jet fuel prices and weaker demand on U.S. routes dimming the earnings outlook.
- Qantas raised its international ticket prices and reports it has hedged 81% of its fuel requirements for the second half of fiscal 2026.
Qantas Airways closed Thursday at A$8.43, hovering close to this month’s lows as investors digested the impact of pricier fuel and questioned whether fare hikes would be enough to protect margins. The share price opened at A$8.52, moving between A$8.52 and A$8.63 during the session, market data from Qantas and Yahoo Finance show. 1
Here’s the crux: Qantas finds itself squeezed by a pair of external pressures. Oil and jet fuel costs are up sharply since the Middle East conflict escalated, just as the carrier contends with weaker economy-class bookings on its Australia-U.S. flights—a drag first flagged a few weeks back. 2
That puts the stock out on a limb, even in the absence of any fresh company news. According to ASX filings, Qantas didn’t post updates from March 13 to March 19 except for news of its class-action settlement. The recent share movement, then, appears to stem largely from mounting operational concerns and broader sector sentiment rather than anything newly disclosed. 3
Qantas announced March 10 it’s hiking international fares, citing rising jet fuel prices. The airline also said it may boost capacity on its Europe services. Across Asia and Europe, other carriers are making similar moves as fuel expenses jump and airspace disruptions push up both costs and flight times, Reuters reported. 4
The airline isn’t fully exposed. Back in February, Qantas said it had hedged 81% of its fuel requirements for the second half of the financial year through June 30, 2026. Most of its fuel cost is locked in at preset rates, which helps cushion sudden jumps. Still, if expensive oil sticks around, hedging only goes so far. 5
Earlier this month, Chief Executive Vanessa Hudson described Qantas’s fuel hedging as “pretty good,” though she acknowledged the oil price surge is a big deal for the sector. Airlines won’t all feel the pain equally, according to Karen Li, J.P. Morgan’s head of Asia infrastructure, industrials and transport research—she told Reuters it comes down to “hedging strategy, air cargo exposure, and network rerouting capabilities.” 6
Qantas shares are still under pressure following its first-half numbers. Back on Feb. 26, the stock plunged 10%—this, despite record underlying earnings from the airline. Investors zeroed in on a 6% slide in international divisional EBIT, or earnings before interest and tax, blaming weaker U.S.-bound economy demand and mounting costs. EBIT, for reference, tallies operating profit before financing and tax. 7
Rivals are under pressure too, each in their own way. Air New Zealand hiked ticket prices. Lufthansa and Ryanair are relying on fuel hedges for protection. Over at Cathay Pacific, more flights are being scheduled to Europe as shifting routes alter travel patterns. 2
Qantas faces a risk: if fuel prices remain high and outlast its hedging, the company could run into trouble just as travelers pull back from rising fares. Airlines worldwide are already tweaking fares and schedules—some are even adjusting their outlooks, according to Reuters. For Qantas, another slump in U.S. demand or stubbornly high refining margins could squeeze earnings further and weigh on the stock. 2
But it’s not all moving in a single direction. Should oil cool off and higher fares stick, Qantas could again draw support from its resilient domestic operations, loyalty program profits, and plans to update its fleet. Right now, though, caution seems to be driving trades in the stock, not long-term conviction. 2
