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Qantas is accelerating its use of AI across the airline, already using the technology
to predict aircraft maintenance, improve flight scheduling, manage disruptions, and
enhance sales and customer targeting. Qantas has already cut 400 head office
roles, with further job losses flagged as AI use expands.

The Australian Services Union which represents thousands of Qantas clerical and
call centre staff, has formally challenged the airline’s AI strategy, warning it could
threaten jobs and reduce customer service quality if primarily used to cut staffing.

There remains significant uncertainty for the airline due to the Middle East conflict
and fuel crisis, which could add $800 million to Qantas fuel bill. Good news for
Qantas is that its fuel suppliers have provided reassurance by securing strong supply
lines and sourcing alternative fuel from the US, Mexico and India.

Customer demand for travel remains strong and Qantas is benefiting from a 20 per
cent reduction in international airline capacity into Australia. This is due to Gulf
carriers like Qatar and Emirates, reducing flights because of security risks and
current “do not travel” warnings and Asian airlines shifting capacity from Australia to
Europe.

Despite strong demand, Qantas recently announced capacity cuts to domestic and
trans-Tasman flights to help manage rising fuel costs, resulting in the suspension of
several regional routes. At the same time, the airline is using targeted sales to keep
planes full on other routes.

Qantas has also announced plans to sell its stake in Jetstar Japan to Japan Airlines,
the carrier’s other major shareholder, with an agreement expected by July 2026
subject to regulatory approval. The move is part of Qantas’ broader retreat from
Asian low-cost airline investments following the closure of Jetstar Asia in 2025.

Qantas has also been promoting its role as the Official Airline Partner of the 2026
NFL Melbourne game and the planned launch of its first nonstop Sydney–Las Vegas
flights from late December 2026.

Source: Qantas chief reveals major AI push to boost revenue and cut costs by Robyn Ironside The Australian 13 th May,
Full details of Qantas flights cuts as fuel costs soar by Robyn Ironside The Australian 13th May.