Qantas keeps positive despite domestic slump

Qantas keeps positive despite domestic slump
By Hannah Edensor


Qantas’ domestic business continues to slide, however the airline has kept results steady by playing to its strengths.

Qantas has lifted passenger numbers, however modestly, as a strong performance from Jetstar and its international operations offset further weakness in its domestic business.

Total passenger numbers in May were up 1% for the month despite a 2.6% slide in its core domestic business, which is facing tough conditions in Western Australia and Queensland due to the end of the mining boom.

Jetstar’s domestic business lifted passenger numbers 2.1%, while its international operations recorded a 6.5% increase.

Meanwhile, Qantas traveller numbers increased 4.6% on the once struggling international division.

Qantas’ international division fell in the month of May, following a long period of gains, although they remain positive for the financial year to date, according to SMH.

Qantas said the fall in yields in May was offset by a higher load factor, meaning it filled a higher percentage of seats than in the same period last year.

The fall came despite Qantas International’s chief executive Gareth Evans earlier this month saying the international yield momentum remained “positive”, according to SMH.

Qantas Group’s capacity jumped up by 0.5%, while Group demand increased by 3.7%, resulting in a revenue seat factor of 75.7%, which was over 2% higher than May 2014.

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