High jet fuel prices are pushing airlines to trim routes and capacity, creating a short-term headwind for Western Sydney International Airport as it tries to attract new carriers.
Brent crude has climbed from US$73 a barrel in early February to about US$113. Singapore jet kerosene, which traded at US$85 to US$95 before late February, peaked above US$240 in March and sits around US$175 now.
Qatar Airways, which will fly three return services a week to the new airport from next year, has seen its daily passengers fall from about 170,000 to 145,000 since the Iran war began, and its destinations drop from 180 to 170. Virgin expects domestic capacity to fall 3 per cent in the first half of 2027, similar to the Qantas Group.
Aviation consultant Michael Galvin said airlines are reviewing marginal routes and swapping in newer, more efficient aircraft, and that carriers are taking a wait-and-see approach to new airports. Transport Minister Catherine King said her office is monitoring the pressure. The airport currently has four return flights a day, with Singapore Airlines due to add a daily Changi service next month.
What it means for your money
Expect fewer cheap seats and less choice on some routes while fuel stays high. If you’re planning summer travel, book earlier, compare airports and keep dates flexible.
Source: SMH Business