Qantas fare rises not justified, say analysts

[oz_mark]

I wonder how fast and far you can raise fares before you start losing sales.....

QANTAS'S latest fare increases are excessive and unnecessary, and could drive away customers, the equities research arm of Macquarie Group has concluded.

The rises could backfire on the airline by triggering a fall in passenger demand and could be hard to justify in a price-sensitive market, Macquarie's analysts, Russell Shaw and Sam Thornton, said.

Qantas fare rises not justified, say analysts

 

[elbarto]

Well the competition seem to jump and follow when QF raise their fares. So if there is continuing demand and people are willing to pay for it then QF will continue to raise fares until the market get fed up and goes elsewhere. It doesn't help that australia is such a limited market in terms of choice that helps the airlines get away with it.

 

[JohnK]

I am not an analyst and I think their fare increases are not justified.

Starting to look elsewhere (even TT for now) as I cannot justify what QF are charging for a return BNE-SYD when specials are not around.

 

[TheStudent]

I am no analysist either, but I would expect that the rise in QF's costs due to increased jet fuel prices would be of a larger percentage then the rise in revenue that will be collected due to the additional fares.

Put simply, QF's costs have risen more then their revenue, and thus the fare rise, if this is in fact the case (As they claim) would then by justified.

 

[TheInsider]

It doesn't help that australia is such a limited market in terms of choice that helps the airlines get away with it.

C'mon, how many airlines do you really need for a population of 20 million where atleast 1/4th are not even adults?

You have 4 airlines doing MEL-SYD-MEL, how many more do you really need?

It's still unsustainable to have 4 airlines in the market at the moment.

 

[pauly7]

C'mon, how many airlines do you really need for a population of 20 million where atleast 1/4th are not even adults?

You have 4 airlines doing MEL-SYD-MEL, how many more do you really need?

It's still unsustainable to have 4 airlines in the market at the moment.

Most savvy analysts and people who study the numbers would agree with you.

TT is and has been on life support since birth, it is only kept alive by Singapore to annoy QF and keep them from freeing up cash to fund International.

Most in the biz are picking Rex to be hurt badly, DJ have really stuck the knife in and QFLink have turned the screws....