Qantas Discount fare shakeup

first_imgMr Joyce said that yields were down about 4 per cent due to overcapacity. Qantas Airways chief executive Alan Joyce has predicted changes will be made to the airline’s discount fee regime that its infamous capacity war with Virgin Australia is over. The airline boss also said that the airline will still offer attractive discount fares but that the absolute number of discounted fares would drop once Qantas filled its seats. In addition, Qantas has always aimed to maintain its 65 per cent domestic market share and 80 per cent of revenue from the corporate market. Qantas International chief executive remarked that although it is good Jetstar capacity will grow, Qantas exit from the Perth to Singapore route is “disappointing”. Mr Joyce told the International Air Transport Association (IATA) annual meeting that underlying growth in domestic demand was generally 4-5 per cent per year but that in the past few years supply of seats has outgrown demand, which has hit Qantas’ revenue base. Qantas is aiming to lower its debt levels by AUD $1 billion in the 2015 financial year.  Mr Joyce said that while capacity growth would fall for the 2015 financial year, Jetstar capacity would rise as corporate and leisure travellers look for cheaper flight options. Source = ETB News: Tom Nealelast_img

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