Qantas to cut domestic flights as fuel prices soar

Flight arrival times at the Qantas terminal at Sydney domestic airport. For its domestic flying schedule in July and August, the airline will cut a further 5% of capacity on top of the 10% it already announced. Photograph: Bianca de Marchi/AAP

Qantas will further cut its domestic flying schedule in response to rising fuel prices, as the airline announced it would give almost 20,000 employees a $5,000 payment to share the benefits of its recovery.

The announcement comes as airports brace for a period of bumper demand driven by a school holiday rush, and as the federal government confirmed Qantas had the highest rate of cancellations of any domestic airline last month.