FlightGlobal
• Graham Dunn
Virgin Australia cuts Q4 domestic capacity 1% and lifts fares as Middle East-linked jet fuel spike adds $30–40m to FY26 costs
Virgin Australia forecast higher jet fuel costs in the second half of FY26, saying the Middle East conflict has driven a sharp fuel price rise and will add $30–40 million versus prior expectations. The airline is responding with fare increases and a 1% domestic capacity cut for Q4 to manage unhedged exposure.
