Qantas Fuel Bill Surges on Iran War, Domestic Capacity Cut

Qantas Airways Ltd. said its fuel costs have surged, forcing it to reduce domestic capacity to cope with the fallout from the Iran war.

Jet fuel prices have more than doubled since the airline provided its most recent outlook in late February, just days before the conflict started. While it has hedged around 90% of its second-half exposure to crude oil, the airline is largely exposed to movements in jet refining margins, which have soared from $20 per barrel in February to a peak of around $120, Qantas said in a statement Tuesday.