<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Virgin Australia has joined Qantas in cutting flights and hiking ticket prices as skyrocketing fuel prices hit local airlines.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A market update flagged that the airline's fuel bill will be $30 million to $40 million above expectations for the second half of the 2025-2026 financial year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Virgin will cut its domestic flight capacity by 1 per cent in the three months until June 30. Virgin now also aims to make 5 per cent revenue per seat, up from 3 to 4 per cent.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES: </span></strong><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-april-15-donald-trump-strait-of-hormuz-blockade/ec13877c-524d-470a-97fb-2a683f1d1667"><strong><span>Xi was silent until now - and his next moves could turn the war</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/us-israel-iran-war-qantas-reduces-domestic-flights-in-response-to-fuel-crisis/a1855169-26ab-4ffb-88e3-6597d11f7af9"><strong><span>Qantas slashes domestic flights as fuel crisis grips airline industry</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The price of jet fuel has been extremely volatile and has more than doubled since the end of February 2026 which impacts fuel costs for the June 2026 quarter," the airline told investors. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Virgin Australia's policy is to operate hedging with higher volumes in the short term to mitigate this price volatility, with other operational levers including fare and capacity adjustments available to be implemented over time."</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/virgin-australia-flags-reduced-capacity-as-fuel-cost-soars/ca1fec74-1b1f-4fb8-8949-55e5b359c8a4" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Yesterday Qantas has slashed its domestic flying capacity by 5 per cent, flagging that 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.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The hike in jet fuel is expected to deliver between a $500 million and $800 million hit to the airline's bottom line.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>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.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains," the update said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The group has taken action to mitigate the impact of the conflict in the Middle East, including international network changes, capacity adjustments and fare increases."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/australian-airlines-at-risk-from-jet-fuel-shortages-report-says/39035c29-3587-4394-96ee-3f2b99ebbd84" rel="" target="" title="Australian airlines among 'most exposed' if jet fuel runs dry"><strong><span>Australian airlines among 'most exposed' if jet fuel runs dry</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h2><span>Australian airlines 'most at risk'</span></h2></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Five days ago </span><a href="https://www.9news.com.au/national/australian-airlines-at-risk-from-jet-fuel-shortages-report-says/39035c29-3587-4394-96ee-3f2b99ebbd84" rel="" target="" title="a leading global credit rating agency warned Australian airlines would be among those most heavily impacted"><span>a leading global credit rating agency warned Australian airlines would be among those most heavily impacted</span></a><span> if the </span><a href="https://www.9news.com.au/iran" target="_blank" title=" Iran war"><span>Iran war</span></a><span> causes prolonged supply chain disruption of jet fuel.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Morningstar DBRS released its report just before the US and Iran reached a two-week ceasefire agreement, which included a pledge by Iran to reopen the Strait of Hormuz during the halt in fighting.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Since the war began on February 28, jet fuel prices have nearly doubled, with airlines passing the cost on through ticket increases.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Analysts say carriers with aggressive fuel hedging — a risk management strategy to lock in prices — should be better protected in the near term.But if global supplies of aviation fuel run low, other airlines will be exposed. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Beyond price pressures, a prolonged supply chain disruption in the Middle East —combined with export restrictions by key jet fuel suppliers such as China — raises the risk of physical jet fuel shortages in certain regions," the report says.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In such a scenario, airlines with greater reliance on imports from affected regions are likely to be most exposed, including carriers in Australia, Asia, and some European markets."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.</span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><p><strong><span>Download the 9NEWS App here via </span></strong><a href="https://apps.apple.com/au/app/9news/id1010533727"><strong><span>Apple</span></strong></a><strong><span> and </span></strong><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1"><strong><span>Google Play</span></strong></a></p></li><li><p><strong><span>Make 9News your preferred source on Google by </span></strong><a href="https://9.nine.com.au/8x987w"><strong><span>ticking this box here</span></strong></a></p></li><li><p><strong><span>Sign up to </span></strong><a 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