Fiji Airways drops Aussie flights, says options are ‘no longer sustainable’ as Qantas and Virgin confirm price hikes

A major airline has suspended certain Australian flights as the air industry continues to feel the bite of the fuel crisis. Fiji Airways has confirmed that from April 25 it will temporarily cease its FJ922 and FJ923 service, which flies between the Pacific island and Brisbane. The airline says the measure is a direct response to soaring fuel prices, which continue to wreak havoc. It comes after other airlines issued warnings that Aussies will face higher prices and fewer options as the industry struggles to cope with swelling fuel costs. Meanwhile, certain domestic flights are also facing the chop, with Australian flag carrier Qantas revealing the end to a service between South Australia’s two biggest city. The firm confirmed this week that from May 18, flights between Adelaide and Mount Gambier will be ceased — with bosses describing the service as “no longer viable”. Virgin Australia on Wednesday said prices for some airfares would increase to offset rising fuel costs, while also reducing capacity. These are in line with a previous announcement first made in March. Virgin Australia will reduce capacity by one per cent over the next quarter, while Qantas say it is temporarily suspending five per cent of domestic flights. Virgin Australia says fuel costs represent about 21 per cent of totals costs as they consumed 3.4m barrels of oil in the first half of 2026. But the airline flagged it has hedged 92 per cent of its Brent crude oil for the second half of the 2026 financial year sending the share price up 12 per cent immediately after the announcement. Although jet fuel prices have more than doubled since late February, Virgin Australia expects the increase in fuel costs for to be about $30-40m above earlier forecasts. “Virgin Australia’s fuel suppliers continue to provide assurances regarding the near-term supply of aviation fuel to support its operations well into May 2026.” It also flagged its wet lease arrangement with Qatar Airways is currently cancelled until mid-June. “As previously disclosed, the wet lease arrangement minimises the risk to Virgin Australia’s balance sheet and earnings and therefore is not financially material,” the statement said. This follows a warning from Qantas on Tuesday which estimates surging fuel costs will cost between $3.1bn to $3.3bn for jet fuel over the second half of the financial year. This is up $600m to $800m compared with previous estimates. “The group continues to closely monitor the dynamic environment and retains optionality to take further actions to mitigate fuel cost increases over time,” Qantas said in a media statement. Affected Qantas and Jetstar passengers will be contacted directly and the airline says alternative flights or refunds will be available for these customers. Qantas says jet fuel refinery margins blew out from $US20 ($A28) to $US120 (A169) a barrel. Qantas now assumes market jet fuel will be between $A185 to $A200 a barrel excluding hedging over the June quarter. “The group is working closely with the government and jet fuel suppliers who continue to provide confidence in fuel supply for the remainder of April and well into May,” Qantas said. “We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains.”