Sydney (Azat TV) – Budget airline Jetstar, part of the Qantas Group, announced it will cut approximately 12% of its domestic New Zealand and trans-Tasman flights from May due to a sharp rise in jet fuel costs linked to the ongoing Middle East conflict. The reductions affect key routes including Auckland to Sydney, Brisbane, Christchurch, and Wellington, disrupting travel connectivity between Australia and New Zealand at a critical time.
Jetstar flight cuts driven by unprecedented jet fuel price surge
Jetstar confirmed the flight reductions on March 25, citing the spike in jet fuel prices following the US-Israel-Iran war as the primary reason. The airline described the schedule changes as “temporary” but did not specify how long these cuts would last. The affected flights represent about one in eight of Jetstar’s services across the Tasman, impacting both international and domestic New Zealand routes.
A Jetstar spokesperson stated, “We are adjusting flights on select routes where there are multiple flights per day to ensure customers can still travel close to their original times. Most impacted passengers have been contacted directly and offered same-day travel alternatives.” The company also noted additional fleet and engineering adjustments influencing the schedule changes.
Regional airline responses highlight fuel price pressure
Jetstar’s move follows Air New Zealand’s earlier reduction of 5% of its flights, including cancellations of return services to Samoa. Air New Zealand attributed its cuts to the same jet fuel crisis stemming from the Middle East war, where Iran’s retaliatory attacks on oil infrastructure and shipping lanes have disrupted supply and pushed fuel prices above US$4 per gallon.
Other international carriers are also reacting to rising fuel costs. Qantas has flagged possible fare increases, while Scandinavian SAS and Thai Airways have announced significant ticket price hikes. United Airlines in the US has canceled about 5% of underperforming routes and warned of an $11 billion increase in expenses if fuel prices remain high.
Singapore Airlines expands capacity amid regional shifts
Contrasting Jetstar’s cuts, Singapore Airlines is increasing its Australian capacity. The carrier announced new Airbus A350-900 services from the new Western Sydney International Airport starting in November and the return of the Airbus A380 on its Melbourne route. These expansions aim to strengthen connectivity through Singapore’s hub despite the ongoing fuel price challenges.
Singapore Airlines’ senior vice-president of marketing planning, Dai Haoyu, emphasized the strategic importance of Western Sydney as a gateway, highlighting late-night departure slots and seamless connections to over 130 global destinations.
Implications for trans-Tasman travel and airline profitability
The Jetstar reductions come at a time when trans-Tasman air travel demand had been growing, with Jetstar carrying over 700,000 passengers across the Tasman in 2025, a 9% increase from 2024. The fuel price-driven cuts may slow this growth and complicate travel plans for both business and leisure travelers.
Airlines face a difficult balance between managing soaring operating costs and maintaining connectivity. While Jetstar labels the cuts as temporary, prolonged fuel price volatility could force longer-term capacity adjustments and fare increases, affecting accessibility and competition in the region.
The current situation illustrates how geopolitical conflicts distant from the Pacific can rapidly reshape regional air travel dynamics, forcing airlines to recalibrate routes, capacity, and pricing in response to volatile fuel markets.