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Capacity cuts yet to produce lift in yields at Qantas, Jetstar

written by australianaviation.com.au | September 29, 2014
Qantas domestic capacity is down so far in 2014/15, while Jetstar domestic continues to add seats. (Seth Jaworski)
Qantas domestic capacity is down so far in 2014/15, while Jetstar domestic continues to add seats. (Seth Jaworski)

While Qantas has stuck true to its forecast of no capacity growth across its Qantas and Jetstar domestic operations for the first half of 2014/15, this capacity discipline has yet to translate to improved yields through July and August, latest figures show.

The airline group has managed a slight capacity reduction in the first two months of 2014/15 with cuts to Qantas’s domestic seats offset by capacity increases at its Jetstar low-cost subsidiary.

The Qantas Group’s monthly operating statistics for August showed Qantas Domestic, QantasLink and Jetstar Domestic flew 9.456 billion available seat kilometres (ASK) over July and August, down about half a per cent from 9.505 billon ASKs in the prior corresponding period.

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Qantas domestic and QantasLink combined reported a 2.8 per cent reduction in ASKs, while Jetstar domestic lifted ASKs by 4.5 per cent.

“Total Domestic (comprising Qantas Domestic, QantasLink and Jetstar Domestic) yields were lower than the prior corresponding period,” Qantas said in its August operating statistics published on Monday.

The last time the Qantas group reported anything other than falling domestic yields – an industry term measuring average airfares per passenger – was in July 2013, when it said yields were flat compared with the prior corresponding period.

Both Australia’s two main airline groups posted full year losses in 2013/14 as a softening economy, sluggish demand and too many seats forced them to cut prices in a bid to fill up aircraft.

PROMOTED CONTENT

Qantas said it would maintain zero capacity growth between in the six months to December, while Virgin has not offered capacity guidance for the period ahead.

25% off starts now! Australian Aviation magazine Cyber Monday sale is now live. Have the very best of Australian Aviation’s annual print and digital subscription. This includes every In Focus and Behind the Lens digital magazine, special coverage, exclusive photos and editions you may have miss. Subscribe now at australianaviation.com.au.

3 Comments

  • Adrian Mealor

    says:

    It not surprising that yields and actual passenger numbers were flat or in decline.. there was the post budget collapse of confidence. No great sport events or holidays to promote travel..

    what metstar need to do is remove first five rows of seats and instead of tbree abreast have two abreast.. jetstar economy plus. LCC carrriers are dime a dozen. Differentiate their product.

    most people hate when a 39 dolar fare ends up costing 99 dollars with fees charges luggage etc..

    Also air travel related expenses are out of control.. taxi, airport parking etc.

  • James

    says:

    @Adrian

    Those additional charges have been forced onto them. For example if they kept it at $99 then all the people looking saw $39 fares at Virgin or Tiger with extra charges they might not of even been aware of. I can bet you who they would go with Jet-star

    In addition the comparability of fares between Jet-star & Qantas doesn’t differ enough to justify adding a premium class within Jet-star. Why wouldn’t these customers just fly Qantas for a similar price.

    Travel related expenses your referring to are really out of airlines control also. This might be part of the reason why airfares have been forced so low and forced into these tactics where to have a lower price point the extras must have additional charges. This is why i think the airports should remain government owned.

    Just my 2 Cents.

  • James

    says:

    ** go with, Virgin or Tiger

Leave a Comment to Adrian Mealor Cancel

Your email address will not be published. Required fields are marked *

Capacity cuts yet to produce lift in yields at Qantas, Jetstar

written by australianaviation.com.au | September 29, 2014
Qantas domestic capacity is down so far in 2014/15, while Jetstar domestic continues to add seats. (Seth Jaworski)
Qantas domestic capacity is down so far in 2014/15, while Jetstar domestic continues to add seats. (Seth Jaworski)

While Qantas has stuck true to its forecast of no capacity growth across its Qantas and Jetstar domestic operations for the first half of 2014/15, this capacity discipline has yet to translate to improved yields through July and August, latest figures show.

The airline group has managed a slight capacity reduction in the first two months of 2014/15 with cuts to Qantas’s domestic seats offset by capacity increases at its Jetstar low-cost subsidiary.

The Qantas Group’s monthly operating statistics for August showed Qantas Domestic, QantasLink and Jetstar Domestic flew 9.456 billion available seat kilometres (ASK) over July and August, down about half a per cent from 9.505 billon ASKs in the prior corresponding period.

Advertisement
Advertisement

Qantas domestic and QantasLink combined reported a 2.8 per cent reduction in ASKs, while Jetstar domestic lifted ASKs by 4.5 per cent.

“Total Domestic (comprising Qantas Domestic, QantasLink and Jetstar Domestic) yields were lower than the prior corresponding period,” Qantas said in its August operating statistics published on Monday.

The last time the Qantas group reported anything other than falling domestic yields – an industry term measuring average airfares per passenger – was in July 2013, when it said yields were flat compared with the prior corresponding period.

Both Australia’s two main airline groups posted full year losses in 2013/14 as a softening economy, sluggish demand and too many seats forced them to cut prices in a bid to fill up aircraft.

PROMOTED CONTENT

Qantas said it would maintain zero capacity growth between in the six months to December, while Virgin has not offered capacity guidance for the period ahead.

25% off starts now! Australian Aviation magazine Cyber Monday sale is now live. Have the very best of Australian Aviation’s annual print and digital subscription. This includes every In Focus and Behind the Lens digital magazine, special coverage, exclusive photos and editions you may have miss. Subscribe now at australianaviation.com.au.

3 Comments

  • Adrian Mealor

    says:

    It not surprising that yields and actual passenger numbers were flat or in decline.. there was the post budget collapse of confidence. No great sport events or holidays to promote travel..

    what metstar need to do is remove first five rows of seats and instead of tbree abreast have two abreast.. jetstar economy plus. LCC carrriers are dime a dozen. Differentiate their product.

    most people hate when a 39 dolar fare ends up costing 99 dollars with fees charges luggage etc..

    Also air travel related expenses are out of control.. taxi, airport parking etc.

  • James

    says:

    @Adrian

    Those additional charges have been forced onto them. For example if they kept it at $99 then all the people looking saw $39 fares at Virgin or Tiger with extra charges they might not of even been aware of. I can bet you who they would go with Jet-star

    In addition the comparability of fares between Jet-star & Qantas doesn’t differ enough to justify adding a premium class within Jet-star. Why wouldn’t these customers just fly Qantas for a similar price.

    Travel related expenses your referring to are really out of airlines control also. This might be part of the reason why airfares have been forced so low and forced into these tactics where to have a lower price point the extras must have additional charges. This is why i think the airports should remain government owned.

    Just my 2 Cents.

  • James

    says:

    ** go with, Virgin or Tiger

Leave a Comment to Adrian Mealor Cancel

Your email address will not be published. Required fields are marked *

Capacity cuts yet to produce lift in yields at Qantas, Jetstar

written by australianaviation.com.au | September 29, 2014
Qantas domestic capacity is down so far in 2014/15, while Jetstar domestic continues to add seats. (Seth Jaworski)
Qantas domestic capacity is down so far in 2014/15, while Jetstar domestic continues to add seats. (Seth Jaworski)

While Qantas has stuck true to its forecast of no capacity growth across its Qantas and Jetstar domestic operations for the first half of 2014/15, this capacity discipline has yet to translate to improved yields through July and August, latest figures show.

The airline group has managed a slight capacity reduction in the first two months of 2014/15 with cuts to Qantas’s domestic seats offset by capacity increases at its Jetstar low-cost subsidiary.

The Qantas Group’s monthly operating statistics for August showed Qantas Domestic, QantasLink and Jetstar Domestic flew 9.456 billion available seat kilometres (ASK) over July and August, down about half a per cent from 9.505 billon ASKs in the prior corresponding period.

Advertisement
Advertisement

Qantas domestic and QantasLink combined reported a 2.8 per cent reduction in ASKs, while Jetstar domestic lifted ASKs by 4.5 per cent.

“Total Domestic (comprising Qantas Domestic, QantasLink and Jetstar Domestic) yields were lower than the prior corresponding period,” Qantas said in its August operating statistics published on Monday.

The last time the Qantas group reported anything other than falling domestic yields – an industry term measuring average airfares per passenger – was in July 2013, when it said yields were flat compared with the prior corresponding period.

Both Australia’s two main airline groups posted full year losses in 2013/14 as a softening economy, sluggish demand and too many seats forced them to cut prices in a bid to fill up aircraft.

PROMOTED CONTENT

Qantas said it would maintain zero capacity growth between in the six months to December, while Virgin has not offered capacity guidance for the period ahead.

25% off starts now! Australian Aviation magazine Cyber Monday sale is now live. Have the very best of Australian Aviation’s annual print and digital subscription. This includes every In Focus and Behind the Lens digital magazine, special coverage, exclusive photos and editions you may have miss. Subscribe now at australianaviation.com.au.

3 Comments

  • Adrian Mealor

    says:

    It not surprising that yields and actual passenger numbers were flat or in decline.. there was the post budget collapse of confidence. No great sport events or holidays to promote travel..

    what metstar need to do is remove first five rows of seats and instead of tbree abreast have two abreast.. jetstar economy plus. LCC carrriers are dime a dozen. Differentiate their product.

    most people hate when a 39 dolar fare ends up costing 99 dollars with fees charges luggage etc..

    Also air travel related expenses are out of control.. taxi, airport parking etc.

  • James

    says:

    @Adrian

    Those additional charges have been forced onto them. For example if they kept it at $99 then all the people looking saw $39 fares at Virgin or Tiger with extra charges they might not of even been aware of. I can bet you who they would go with Jet-star

    In addition the comparability of fares between Jet-star & Qantas doesn’t differ enough to justify adding a premium class within Jet-star. Why wouldn’t these customers just fly Qantas for a similar price.

    Travel related expenses your referring to are really out of airlines control also. This might be part of the reason why airfares have been forced so low and forced into these tactics where to have a lower price point the extras must have additional charges. This is why i think the airports should remain government owned.

    Just my 2 Cents.

  • James

    says:

    ** go with, Virgin or Tiger

Leave a Comment to Adrian Mealor Cancel

Your email address will not be published. Required fields are marked *

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