Qantas slashes domestic flights as fuel crisis grips airline industry
Moderated by Tomas Kauer 
Qantas has slashed its domestic flying capacity by 5 per cent in response to increasing fuel costs triggered by the war in the Middle East.
In a market update today, the airline said it is set to pay $3.1 billion to $3.3 billion for jet fuel over the second half of the financial year after refinery costs skyrocketed from $US20 a barrel to $US120 a barrel.
The hike in jet fuel is expected to deliver between a $500 million and $800 million hit to the airline's bottom line.
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Qantas Group says it is working closely with the government and jet fuel suppliers who remain confident about supply for the remainder of April and well into May.
"We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains," the update said.
Passengers on impacted Qantas and Jetstar domestic flights will be contacted about new flights.
More to come.
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