Aviation

Joyce eyes $19 Jetstar fares post-coronavirus

Jetstar could reduce fares for its Melbourne to Sydney service to an astonishing low of $19 once travel across the country resumes.

Speaking yesterday following Qantas Group’s trading update, CEO Alan Joyce said some Australian airfares would need to be reduced to stimulate aviation demand after COVID-19-related travel restrictions are eased.

“On Melbourne-Sydney, you could see Jetstar have $39 airfares, you could see $19 airfares, and we’ll still cover our cash costs on those flights,” he said, according to The Sydney Morning Herald.

Joyce’s comments come not long after he wrote in a LinkedIn post that Aussies should expect “lots of low airfares” by the time people start flying again.

Qantas’ current domestic flying has been reduced to five per cent of its pre-coronavirus pandemic levels, with the CEO flagging aviation’s recovery will be gradual, despite the possibility of domestic borders opening and a brainstormed trans-Tasman bubble, which now has the interest of New Zealand’s prime minister.

Joyce also advised that Qantas would put its ‘Project Sunrise’ plan on hold in light of COVID-19 bringing international travel demand to a halt.

The Qantas CEO also confirmed the company was in discussions with Vietnam Airlines on selling its 30 per cent stake in their Vietnamese joint venture Jetstar Pacific, after speculation of a potential sale emerged last month.

However, the SMH reported that Joyce reaffirmed Qantas’ commitment to its other Jetstar franchises in Singapore and Japan.


Featured image: iStock/Ryan Fletcher

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