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The Times

Airlines are facing higher fuel costs and cutting fares at the same time. How does that work?

  • Written by Anita Manfreda, Associate Professor - Blue Mountains International Hotel Management School, Torrens University Australia

Trying to book a flight right now can feel absurd. Qantas and Virgin Australia are warning that higher fuel costs and disruption linked to the Middle East conflict are putting pressure on fares and forcing capacity cuts.

Yet both airlines are running major domestic flight deals amid softer demand at home.

If airline costs are rising, why are some...

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