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AJ says fares will rise

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markis10

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Something of a statement of the obvious....

Qantas chief Alan Joyce expects average airfares will begin to rise now that the long-running domestic capacity battle against Virgin Australia seems to have ended.He said underlying demand growth in the local market was 4-5 per cent a year, but in the past few years capacity had grown by about 8 per cent.
''What that has meant is roughly for every percentage over the demand that meant a 1 percentage yield fall,'' he said in reference to returns on fares. ''And that is why our yields have been down by about 4 per cent.''
Qantas has said it will freeze domestic capacity in the first quarter of the 2015 financial year at a time when consumer confidence is low and demand in the resources sector slows.
Mr Joyce said the airline would still be offering attractive discount fares but the more rational capacity market meant fewer of those would be available once the airline was comfortably filling its seats.
Overall, domestic airfares have fallen by 21.6 per cent over the past decade and are at extremely low levels.
''It is very clear that the capacity situation in the domestic market has hit everybody's profitability,'' Mr Joyce said at the International Air Transport Association annual meeting in Doha, Qatar.


Read more: Qantas boss Alan Joyce predicts cutbacks in discount airfares
 

burmans

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Something of a statement of the obvious....



Read more: Qantas boss Alan Joyce predicts cutbacks in discount airfares[/FONT][/COLOR]
Read a business article about this recently, doesn't seem to be only Australia but the crux of the article was that worldwide airlines have been increasing capacity when they already can't cover their cost of capital (in the good cases, many are losing money) and hence driving down their yields and ability to make profits.

Cutting their own throats was essentially the headline. Shame really that AJ and his team didnt think this through before they looked to increase capacity beyond demand!
 

MEL_Traveller

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Apr 27, 2005
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Yawn.

Who cares what qantas says these days?

They do what they want, when they want, with apparently little regard for who they upset in the process.

We get lots of spin... which seems to be so desperately put together, but not much more.
 

Happy Trails

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AJ says fares will rise?
That's likely to be the most accurate forecast he's made in the past several years.
 

GPH

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I have always wondered how a business that invests many millions (Billions) in infrastructure, well their product for less than a decent lunch........
Maybe if there hadnt been a headlong lunge into fare cutting, some of the enhancements we have had to endure may not have eventuated
 

lovestotravel

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Sep 18, 2008
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Old news!

The "sale" fares continue to get more expensive

MEL-CBR is my benchmark fare, when on sale $89 was the general price last year

Earlier this year $99
Few months ago $109
Recently $115
.
.
.
.
.
Now $144!! :evil::shock:
 

Virgin Bart

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Old news!

The "sale" fares continue to get more expensive

MEL-CBR is my benchmark fare, when on sale $89 was the general price last year

Earlier this year $99
Few months ago $109
Recently $115
.
.
.
.
.
Now $144!! :evil::shock:
$144 on special?! What's the normal QF price then??
 

JohnK

Veteran Member
Joined
Mar 22, 2005
Messages
43,719
If airfares continue to rise then I will need to rethink my commuting strategy.

I am not paying what Qantas feels the airfare is worth....
 

Himeno

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Jun 15, 2011
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4,181
If airfares continue to rise then I will need to rethink my commuting strategy.

I am not paying what Qantas feels the airfare is worth....
You could always use the 13 hour overnight MEL-SYD buses.
 

JohnK

Veteran Member
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Mar 22, 2005
Messages
43,719
You could always use the 13 hour overnight MEL-SYD buses.
There are other ways.

One way is not fly back to SYD that often. See if that helps their revenue or passenger statistics.
 

oz74

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Jul 24, 2011
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I'm amazed the board let him forecast anything considering his track record.
 

markis10

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I'm amazed the board let him forecast anything considering his track record.
LOL, and today we have a Qantas sale with some of the cheapest offerings seen in a while domestically.
 
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Aussie_flyer

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Apr 26, 2009
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LOL, and today we have a Qantas sale with some of the cheapest offerings seen in a while domestically.

yes but ultra-advance fares. These fares of $199 to PErth, $119 to BNE ex-MEL have been around on sales for a while, they don't seem to be creeping up at all
 

markis10

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yes but ultra-advance fares. These fares of $199 to PErth, $119 to BNE ex-MEL have been around on sales for a while, they don't seem to be creeping up at all
I wouldnt call July ultra advance with the J offers which are very attractive to FNQ, given its peak.
 
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