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QantasLink is axing its Mount Gambier to Adelaide service as the Qantas Group temporarily suspends four other routes due to fuel constraints.
From 18 May, the Adelaide-Mount Gambier route will be suspended indefinitely, while Qantas’ Melbourne-Coffs Harbour will be paused until 14 June and Melbourne-Hamilton Island until 28 June. Jetstar will suspend Sydney-Busselton until 18 September, and Darwin-Gold Coast until 12 October.
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Qantas says demand on Mount Gambier services has become unsustainable, and Australian Aviation understands recent load factors have dipped below 20 per cent. Its exit will leave the Adelaide-Mount Gambier route served only by Rex.
The move comes after QantasLink earlier this year also dropped its services from Melbourne to Albury and Wagga Wagga.
“We know this is frustrating for customers and the local [Mount Gambier] community and sincerely apologise for any inconvenience caused,” said QantasLink CEO Mark Dal Pra, as reported by the ABC.
“While the recent increase in fuel prices is making the situation more difficult, the previous decline in demand means the route is simply no longer viable for us to continue operating.
“We’ve tried to boost demand by adjusting schedules, working with the local council, and offering multiple sales, however demand is well below sustainable levels.”
The route suspensions come amid a broader reduction in domestic capacity from Qantas Group, with the Flying Kangaroo and Jetstar dropping five percentage points of capacity across the board in the fourth quarter of the 2026 financial year, most of which is on major domestic trunk routes.
According to a market update, jet fuel prices have “more than doubled and remain highly volatile” since Qantas issued its first-half financial results for the year, with its forecast fuel cost rising by around $600 million to $800 million.
“The Group has hedged approximately 90 per cent of its 2H26 exposure in crude oil but is largely exposed to movements in jet refining margins, which have increased from US$20 per barrel in February to a peak of around US$120. As a result, the estimated fuel cost for 2H26 is now $3.1-3.3 billion,” it said.
“The Group is working closely with the Government and jet fuel suppliers who continue to provide confidence in fuel supply for the remainder of April and well into May. We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains.”
Virgin Australia is also slightly reducing its domestic capacity by one per cent in the fourth quarter.
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