(Reuters) -Australia’s Qantas Airways on Friday cut its domestic unit revenue forecast for the first half of 2026 and flagged a slight rise in fuel costs, citing soft corporate travel demand, elevated refining margins and higher carbon compliance charges.

Qantas is now expecting an increase of about 3% in its domestic unit revenue for the first half, down from its prior forecast range of 3% to 5%.

The country’s flag carrier said travel demand from the mining and resources sector remained robust, but broader corporate travel in Australia was recovering at a slower pace than previously expected.

Group capacity for the first half of 2026 is now expected to be “slightly lower than previously guided”, due to delays in the return to service of its A380 fleet, the company flagged.

“We are adj

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