Qantas has lost a full percentage point of market share for overseas travellers over the past year as foreign carriers dominate, new figures show.
While the Flying Kangaroo remains Australia’s largest international carrier, the airline’s market share fell to 16.2 per cent in May, from 17.2 per cent a year ago.
In that time, Qantas alliance partner Emirates increased its share of all passengers travelling into and out of Australia to 9.9 per cent, from 9.7 per cent in the prior corresponding period. Consequently Dubai-headquartered Emirates is now Australia’s second largest international carrier, with Singapore Airlines third at 9.3 per cent, up from 8.9 per cent in the prior corresponding period.
The report from the Bureau of Infrastructure, Transport and Regional Economics (BITRE) said the Qantas Group, comprising Qantas, Jetstar and Jetstar Asia, accounted for 24.9 per cent of all international passengers in May 2014, down from 25.1 per cent a year ago.
Qantas dropped Perth-Singapore services in May 2014 and has been replacing Boeing 747-400s with smaller Airbus A330s on some routes to Asia in a bid to reduce costs and stem losses in its international division.
Virgin Australia’s share fell slightly to 8.3 per cent, from 8.5 per cent, while Qantas-owned Jetstar increased its share to 8.0 per cent, from 7.4 per cent.
The BITRE report said there were 2.44 million passengers who travelled into and out of Australia in May, up 7.4 per cent from a year ago.
Almost seven out of every 10 overseas travellers were flying on non-Australian flag carriers, the BITRE report said.
And low-cost carriers were continuing to grow market share, capturing 16 per cent market share in May, up from 13.9 per cent.
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