Capacity hikes backfire on Qantas

Capacity hikes backfire on Qantas
By admin


Domestic capacity increases are starting to take their toll on Australian airlines, with Qantas reporting a decline in yields in July.

Despite increasing seats by 5.8% in an ongoing struggle for market share with rival Virgin Australia, Qantas Domestic actually carried 40,000 passengers less than in July 2011, a 2.6% decrease. Passenger loads fell 4.3 percentage points to 77.7%.

Jetstar’s domestic services also saw loads drop 3.6 percentage points to 80.9% as the low cost carrier boosted capacity by 6%.

“Group domestic yields (comprising Qantas Domestic, QantasLink and Jetstar Domestic) were lower than the prior period due to increased capacity in the domestic market,” Qantas revealed in a statement to the ASX yesterday.

“In addition, both Qantas and Jetstar yields and loads in the prior period were favourably impacted by the grounding of Tiger Airways Australia.”

The airline said Qantas International yields had improved over the course of the month as it trimmed 7.8% of capacity by “exiting major loss making routes” in the second half of the last financial year, although loads still fell 2.1 percentage points to 82.7%.

However, a 26.4% increase to Jetstar International’s capacity saw its yields decline.

Meanwhile, Tiger chief executive Andrew David told the Australian Financial Review that Tiger too was feeling the impact of the capacity increases as it continues to recover from last year’s grounding.

“Qantas and Virgin and Jetstar have all added a lot of capacity at the same time, and as a result there’s an awful lot of capacity in the market and it affects everybody’s yield,” he said. “It puts pressure on the light at the end of the tunnel for us.”

Latest News

  • Destinations

Malolo Island Resort Fiji launches its own resort app

Guests at the Malolo Island Resort can now get a better experience even before they arrive with the resort’s newly launched mobile app. Guests are encouraged to download and use the app ahead of their stay to build their itinerary. They can check-in prior to their arrival and make dinner and spa reservations all from […]

  • Tour Operators

France on foot holiday savings

Walking up a steep incline may be painful, but it is all worth it when you see that incredible view.

  • Cruise

Seabourn introduces enhanced groups programs for travel advisors

Leading ultra-luxury cruising and expedition travel company, Seabourne, proudly announces the “Seabourn Enhanced Groups Program” to elevate business prospects for travel advisors. This program introduces a revamped Tour Conductor Credit that offers shipboard credits or bonus commission for bookings. It also eliminates the need for deposits for small group allotments and increases group capacity. “Seabourn […]

  • Cruise

Ponant’s latest luxury cruise expeditions for 2024 and 2025

Head out to see the beauty of unique destinations on three bucket-list explorations of Australia with Ponant Cruise’s new luxury expeditions. Known for their luxury cruises, Ponant offers unique and truly exceptional sea voyage aboard sleek and intimately sized cruise yachts. They offer a range of discovery expeditions, and launched new cruises that take guests […]

  • Aviation
  • News

Christine O’Reilly to replace Peter Hay as chair of Australia Pacific Airports Corporation

Christine O’Reilly has been named as the new chair of Australia Pacific Airports Corporation (APAC) – the owner of Melbourne and Launceston Airports. According to a release, O’Reilly will replace Peter Hay on 1 October, who retires after five years as Chair of APAC. APAC CEO Lorie Argus said O’Reilly’s appointment comes at an exciting […]

  • Tourism

The number one thing you can’t forget if you’re going to Europe & The Olympics

As the Summer Olympics in Paris draws near, travel insurance comparison site Compare the Market is urging travellers to safeguard their European summer sports dreams by getting travel insurance for when the unexpected happens. While France seems like a decently safe country to visit, it’s crucial not to overlook the potential risks that could disrupt a holiday. From bed […]