SYDNEY — Jetstar has temporarily cut more than 10% of its scheduled flights between Australia and New Zealand as soaring jet fuel prices triggered by the Middle East conflict bite into demand and raise operating costs for the Qantas-owned low-cost carrier.

Jetstar
Jetstar

A Jetstar New Zealand spokesperson confirmed Wednesday that approximately 12% of services — including popular routes such as Auckland-Sydney and Auckland-Brisbane — have been affected, along with some domestic New Zealand flights like Auckland-Christchurch and Auckland-Wellington. More than 55 flights are expected to be removed from the schedule in May alone, according to aviation analytics firm Cirium.

"We have made some temporary changes to our schedule, including due to a rise in jet fuel prices as a result of the conflict in the Middle East and other rising costs," the spokesperson said. "All impacted passengers have been contacted directly and most have been offered same-day travel. We are sorry for the inconvenience and thank our customers for their understanding."

The cuts come as Brent crude and jet fuel prices have surged following U.S. and Israeli strikes on Iran in late February, disrupting supplies through the Strait of Hormuz and pushing aviation fuel costs sharply higher. Jet fuel prices, which hovered around $85-$90 per barrel before the escalation, have climbed dramatically, forcing airlines across the region to reassess schedules and fares.

Jetstar's move mirrors broader industry pain. Air New Zealand earlier announced cuts to about 1,100 flights — roughly 5% of its schedule — through early May, affecting around 44,000 passengers. Other carriers, including Qantas on its international routes, have raised fares in response to the volatility.

Trans-Tasman travel has long been one of Jetstar's strongest routes, with the airline positioning itself as an affordable option for holidaymakers, families and business travelers between major Australian cities and New Zealand destinations like Auckland, Christchurch and Queenstown. The reductions are expected to run through at least early May, with potential for further adjustments if fuel prices remain elevated.

Industry analysts said the decision reflects a combination of higher input costs and softening demand as higher airfares deter some leisure travelers. Jetstar has not disclosed exact passenger numbers affected but emphasized that most rebookings were on the same day.

The timing adds pressure to Australia's broader fuel crisis, where hundreds of service stations have run dry or limited grades amid panic buying and supply disruptions from Asian refineries. The government has released strategic reserves and relaxed diesel quality standards, but aviation fuel faces its own constraints.

Qantas Group, which owns Jetstar, has already hiked international fares and is monitoring domestic and low-cost operations closely. Chief executives across the sector have described the fuel spike as "unprecedented" in recent years, with some comparing it to historical shocks in the 1970s.

For passengers, the cuts mean potential disruptions to holiday plans, especially with Easter and autumn school breaks approaching in both countries. Jetstar urged travelers to check their bookings via the airline's app or website and contact customer service if needed. Those on affected flights have generally been offered alternatives or refunds where rebooking is not possible.

New Zealand tourism operators expressed concern. The trans-Tasman corridor is a vital lifeline for the country's visitor economy, with Australians making up a large share of short-haul visitors to destinations like Queenstown for skiing or Auckland for city breaks. Reduced capacity could dampen bookings at a time when the sector is still recovering from earlier pandemic effects and recent global uncertainty.

Australian travelers heading to New Zealand for rugby, concerts or family visits may face fewer options and potentially higher fares on remaining services. Competition on the route includes Air New Zealand and full-service Qantas flights, which may see some spillover demand.

Jetstar operates a fleet primarily of Airbus A320-family aircraft on these routes. While no safety issues were cited, the airline has faced separate challenges with aircraft availability in recent months, though the current cuts are explicitly tied to fuel economics.

The Qantas Group has not suspended its overall financial guidance but has flagged increased costs flowing through the low-cost subsidiary. Jetstar's New Zealand operations have grown significantly in recent years as the carrier expanded domestic and trans-Tasman services to challenge Air New Zealand's dominance.

Economists warned that sustained high fuel prices could ripple through the wider economy. Higher airfares and reduced connectivity may dampen tourism spending, while freight and logistics costs could rise for businesses reliant on quick trans-Tasman movement of goods and people.

The International Energy Agency has described the current global supply disruption as potentially severe if the Middle East conflict persists, with Asian refineries — key suppliers to both Australia and New Zealand — facing feedstock shortages.

For now, Jetstar described the schedule changes as temporary and said it would continue to monitor the situation. Passengers with upcoming travel are advised to allow extra time for any rebookings and to consider travel insurance that covers flight disruptions.

The development highlights the vulnerability of low-cost carriers, which typically operate on thin margins and have less flexibility to absorb sudden cost increases compared with full-service airlines. Jetstar's business model relies on high load factors and efficient operations, making fuel a critical variable.

As the situation evolves, both Australian and New Zealand governments are monitoring aviation fuel supplies closely. No formal fuel emergency has been declared, but contingency planning is underway in case disruptions worsen.

Travelers affected by the cuts can visit Jetstar's website or app for the latest information on their specific flights. The airline has pledged to minimize inconvenience by prioritizing same-day alternatives where possible.

With oil markets remaining volatile and no immediate resolution in sight for the Middle East tensions, further adjustments across the aviation sector cannot be ruled out. For Jetstar passengers planning trips across the Tasman, flexibility and early checks on bookings will be essential in the coming weeks.