Qantas Airways Limited (ASX:QAN) shares plummeted 5.01% during intraday trading, as the Australian flag carrier revised its domestic revenue outlook and flagged higher fuel costs. The airline's stock hit its lowest level since mid-May, reflecting investor concerns over the company's near-term financial performance.

In a market update, Qantas announced it now expects first-half 2026 domestic unit revenue to increase by approximately 3%, down from its previous forecast range of 3% to 5%. The company cited softer non-resource corporate demand as the primary reason for the downward revision. While travel demand from the mining and resources sector remained robust, broader corporate travel in Australia was recovering at a slower pace than previously anticipated.

Adding to the pressure, Qantas raised its fuel cost forecast for the first half to A$2.62 billion ($1.70 billion), up from the prior outlook of A$2.6 billion. The increase reflects elevated jet refining margins due to ongoing geopolitical volatility. Despite these challenges, the company maintained its international unit revenue guidance at 2-3% growth for the first half, and its Qantas Loyalty program continues to perform strongly. In a separate announcement, Qantas revealed plans to launch Economy Plus in February 2026, offering enhanced legroom and priority perks on domestic and short-haul international flights, as part of its fleet renewal program.