Qantas has a long history of connecting Australians.
asserted
Qantas → have → Australians
Founded in outback Queensland more than a century ago, it began as a way to link isolated outback communities across a vast country.
asserted
it → found → country
From those bush beginnings, it grew into Australia's national carrier.
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it → grow → carrier
But the business behind the familiar red tail is changing.
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business → change → tail
Qantas plans to cut 850 corporate jobs as it enters a deal with global technology and consulting giant Accenture, with the work to be delivered predominantly from India.
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work → plan → India
The roles are largely back-office positions in Sydney, and include finance, human resources and marketing.
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roles → include → finance
Chief executive Vanessa Hudson said the changes will modernise the airline, simplify its operations and accelerate the use of artificial intelligence.
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changes → say → intelligence
Hudson says the systems need an overhaul if the airline is to keep pace with a rapidly changing industry.
But the Australian Services Union has challenged the airline's explanation, accusing it of using AI as a justification for shifting Australian jobs offshore.
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Union → say → jobs
Tourists tighten their belts
asserted
Tourists → tighten → belts
The announcement marks a significant shift for the company, but it also reflects the pressures facing an industry that has had little time to catch its breath.
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that → mark → breath
The COVID-19 pandemic brought tourism to a standstill, and Qantas received $2.7 billion in taxpayer subsidies from the Morrison government.
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Qantas → bring → government
Then, just as visitor numbers were starting to rebuild, a fresh wave of challenges arrived.
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wave → start → challenges
Rising fuel costs, driven higher by disruption to global oil supplies amid the war in Iran, are putting pressure on airlines.
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costs → rise → airlines
Higher wages, insurance premiums and airport charges are adding to the cost of doing business, while staff shortages continue to affect parts of the tourism sector.
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shortages → add → sector
Despite those pressures, Qantas is still making a lot of money, reporting almost $1.3b in full-year profits in August (although that is down from last year by 19.7 per cent).
But airlines are also facing pressure from the other side of the equation: passengers.
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airlines → make → equation
With household budgets under strain, Australians are becoming more selective about how they spend their money.
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they → become → money
Research by the Tourism and Transport Forum found just 54 per cent of Australians planned to take a mid-year break in 2026, down from 74 per cent in 2024.
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cent → find → 2024
Tourism Research Australia figures show domestic overnight trips fell 2 per cent in the June quarter, compared with the same period last year, while the number of nights spent away also declined.
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number → show → nights
And the impact is already being felt in the air.
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impact → feel → air
Qantas has cancelled its Adelaide–Mount Gambier route indefinitely and will suspend flights between Melbourne and Alice Springs from next week, meaning there are now no direct flights between the two cities.
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Qantas → cancel → cities
It has also temporarily suspended flights between Melbourne and Hamilton Island and Coffs Harbour, blaming high fuel costs and a lack of demand.
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It → suspend → demand
For tourism destinations, those decisions matter.
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decisions → matter → destinations
Qantas is a major part of the machinery that keeps Australian tourism moving.
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that → keep → tourism
Its flights bring international visitors into the country and connect domestic travellers with destinations far beyond the capital cities.
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flights → bring → cities
Qantas told a Senate inquiry last year it operated 102 routes to 62 regional towns and centres, carrying more than nine million passengers to and from regional and remote Australia each year.
asserted
it → tell → Australia
LoadingBonza's collapse in 2024 wiped out dozens of routes, including 30 regional connections that had no other airline servicing them, according to the Australian Competition and Consumer Commission (ACCC).
uncertain
airline → wipe → Commission
Regional airline Rex also went into administration that year, after expanding into capital city routes.
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Rex → go → routes
A visitor arriving in Cairns, Longreach or Mount Isa brings potential business for hotels, restaurants, tour operators and local attractions.
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visitor → arrive → hotels
But when flights disappear, become less frequent or cost more, destinations can become harder to reach.
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destinations → disappear → more
Travellers may choose somewhere else, leaving local businesses with fewer bookings and less money flowing through their communities.
uncertain
Travellers → choose → communities
The continued disruption of AI
For businesses already operating on tight margins, the promise of greater efficiency is attractive.
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promise → operate → efficiency
But the move to AI also raises questions about jobs, customer service and how much of the travel experience will eventually be handled by machines.
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much → raise → machines
A 2026 survey by the International Air Transport Association (IATA) found almost half of passengers had used AI to help plan travel.
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half → find → travel
That included searching for flights to a particular destination, finding cheap fares and getting ideas about where to go.
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That → include → ideas
Travel businesses are also using the technology.
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businesses → use → technology
A survey by US publication Travel Market Report found three in four travel advisers are using AI to create content, research trips and communicate with their clients.
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advisers → find → clients
It has to compete, modernise and manage rising costs.
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It → have → costs
But its decisions extend well beyond the airline itself, particularly in a country where tourism depends so heavily on flights.
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tourism → extend → flights
The tourism industry has survived the pandemic and rebuilt much of its visitor market.
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industry → survive → market
Now it faces another test: keeping travel affordable, businesses afloat and destinations accessible as the cost of getting people around the country continues to rise.
asserted
cost → face → country