Jetstar hike illustrates market share battle

Jetstar hike illustrates market share battle
By admin

Jetstar increased domestic capacity by 15.5% last month in a further sign of how fierce the battle for market share has become.

Qantas domestic, including QantasLink, also saw a slight rise of 0.5%, but it was its low cost offshoot that led the growth.

Demand, measured by revenue passenger kilometres (RPK), also increased sharply, by 12.4%, but it came at the expense of yield. Load factors slipped back 2.3 percentage points to 83.3%.

The figures demonstrate the intensity of the domestic market share battle, which has negatively impacted the revenues of both Qantas and Virgin Australia.

Meanwhile, Qantas International carried 5.8% fewer passengers, dropping from 580,000 in January 2012 to 546,000, reflecting a gradual shift of international flying from Qantas to Jetstar.

Demand fell 7.4% and capacity by 7.7%.

The slack was picked up by Jetstar which carried 480,000 passengers overseas, a rise of 7.6%. Demand and capacity climbed 8.9% and 3.1% respectively. Loads grew 4.3 points to 80.8%.

Qantas group passenger numbers were up almost 3% to 4.14 million.


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