Australia’s Qantas Airways said on Tuesday it has raised its fuel cost outlook and delayed a planned share buyback, citing sharply higher and volatile jet fuel prices after the war in the Middle East disrupted oil supplies.

The airline said jet fuel prices have more than doubled, lifting its estimated fuel bill for the second half of fiscal 2026 to A$3.1 billion-A$3.3 billion ($2.20bn-$2.34bn), up from its prior forecast of A$2.5bn.

While Qantas has hedged much of its crude exposure, it remains significantly exposed to the spike in jet fuel spreads, the Australian flag carrier said.

“Qantas continues to see strong demand for international travel to Europe as customers seek alternative routes,” the airline said.

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