Qantas Airways has announced a fare increase and a 5% reduction in domestic flight capacity as travel demand shifts away from airlines operating through the Middle East due to ongoing conflicts. The Australian airline is reallocating its resources to cater to the growing interest in European destinations, particularly Paris and Rome. As a result of the rising oil prices linked to the Iran conflict, Qantas has projected its fuel bill for the second half of the 2026 financial year to be between $3.1 billion and $3.3 billion, significantly up from the previous forecast of $2.2 billion. In response to these challenges, Qantas has raised ticket prices and may implement further fare increases if necessary. Following the announcement, Qantas shares dropped by over 3% in early trading, reflecting investor concerns over the airline's rising operational costs.