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The Iran war is prompting Qantas to scale back flights within Australia, but it's flying more to Paris and Rome.
The airline's scaling back domestic Qantas and Jetstar flights about 5%.
Qantas says fuel prices have more than doubled since late February and remain highly volatile.
Australia Correspondent Steve Price told Mike Hosking the airline is estimating its fuel bill will be around $3.3 billion for the next 12 months – nearly a billion dollars more than expected.
But he says it’s also making more money from international flights, as Middle Eastern airlines such as Qatar and Emirates are unable to provide reliable and regular flights.
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