Australia’s second-largest airline group will cut domestic capacity by 1 per cent for the fourth quarter of this financial year. In a market update to the ASX, the carrier said it expects its fuel costs to rise by $30-40 million over previous expectations for the second half.

Initially available on the airline’s new 787-9 Dreamliner fleet for Auckland–New York services starting in December, six pods per aircraft will be available to Economy and Premium Economy customers in two four-hour sessions per flight, with prices starting at $495 and bookings to open on 18 May.

CPB Contractors Pty Ltd and SMEC Australia will compete with FCC Construction, Martinus Rail, Arcadis, and BG&E for the contract on stage 1, including the widening of the rail corridor, works on Sunshine Station, and the section between West Footscray and Albion.

In its submission to the Productivity Commission’s inquiry into regional airfares, the carrier said Australia has “one of the most liberalised aviation markets in the world” and suggested the government has a part to play in keeping the regions connected.