Airlines scrap regional routes as jet fuel prices soar

Summarised from 2 outlets · Updated 16 Oct, 04:32 · Archive

Virgin Australia has cancelled several regional routes as jet fuel prices surge 140 per cent.

Rural and regional Australians are losing flight options as soaring oil prices and weaker demand hit regional air routes. Virgin Australia has cancelled routes from Uluru to Brisbane and Uluru to Melbourne, revealed in October, and scrapped services from Adelaide to Brisbane, Adelaide to Cairns, Adelaide to Hobart and Launceston to Perth in recent months.

Speaking at a Senate inquiry into rural and regional affairs and transportation, Virgin Australia chief customer officer Andrew Cleary said rising fuel prices had made it increasingly difficult to keep certain regional routes operating profitably. 'We would have stuck it out but jet fuel just made it completely unsustainable,' he said. 'This is not a two to three-month spike in jet fuel, there are very few people in industry that think this will be a short-run impact.'

Jet fuel was roughly $US85 per barrel in late February 2026 but subsequently soared to $US225.44 per barrel, a 140 per cent increase. The International Air Transport Association says jet fuel prices were about $US190.18 per barrel over the last week. Airlines for Australia and New Zealand chief executive Stephen Beckett told the inquiry that even small cost rises on regional flights could hit customers much harder than on major routes.

How it is being reported

• ‘Completely unsustainable’: Airlines scrap routes as jet fuel soarsRural Australians are losing flight connections as a 140 per cent jet fuel price surge hits the industry hard.The West Australian · 16 Oct, 04:08
• ‘Completely unsustainable’: Airlines scrap routes as jet fuel soarsRural Australians are losing flight connections as a 140 per cent jet fuel price surge hits the industry hard.Perth Now · 16 Oct, 04:08

In this story: Virgin Australia · Uluru · Adelaide · Brisbane · Andrew Cleary · Stephen Beckett · Australia

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