Qantas to axe Adelaide–Mount Gambier flights amid fuel costs and weak demand

Qantas will cancel all flights between Adelaide and Mount Gambier from May 18, ending its services on the route and leaving Regional Express Airlines as the only commercial carrier operating from the regional South Australian airport.

The airline said rising fuel costs and declining passenger demand had made the route unsustainable. Qantas currently operates flights between Mount Gambier and Adelaide four days a week, but announced the service would cease next month.

The decision comes as the airline faces a sharp increase in fuel expenses, with its overall fuel bill expected to rise by between $600 million and $800 million. In response, Qantas and Jetstar will reduce domestic capacity by five percentage points between May 18 and June 30.

QantasLink chief executive Mark Dal Pra said the Adelaide–Mount Gambier service was no longer financially viable, with some flights operating at less than 20 per cent capacity.

“We know this is frustrating for customers and the local community and sincerely apologise for any inconvenience caused,” he said.

“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.”

Passengers affected by the cancellation will be contacted by Qantas and offered refunds.

The withdrawal is a blow for the Limestone Coast region, with Mount Gambier Airport now relying solely on Rex for regular commercial services. Rex continues to operate flights to both Adelaide and Melbourne seven days a week.

South Australian Premier Peter Malinauskas said the government understood Qantas’s commercial reasoning, but described the loss of the route as disappointing.

“On the other hand, naturally it’s disappointing to lose those services from Mount Gambier,” he said.

“But it speaks to the exact reason the federal government intervened to save REX.

“It’s fair to say we expressed our disappointment to Qantas, to put it politely.”

Qantas first launched flights between Adelaide and Mount Gambier in March 2021. It also briefly operated services between Mount Gambier and Melbourne, before ending that route in 2022.

The latest move highlights the ongoing pressure facing regional aviation, as airlines balance operating costs against passenger demand in smaller markets.