Qantas continues to shed passengers

[markis10]

I find the international numbers down 8.5% on a like for like comparison more worthy of news, the restructure has cut costs but also yield on the routes still running!

QANTAS has conceded that returns from domestic fares fell in July amid intense competition from Virgin Australia, but has broken with normal practice by not putting a figure on the size of the decline.
The prospect of a fare war comes as the Emirates chief executive, Tim Clark, jets into Sydney for a short visit this week, further fuelling speculation the Middle Eastern airline will sign an alliance agreement with Qantas covering routes between Australia and Europe.
Critics say Qantas is acting from a position of weakness in pursuing a code-share deal, and risks handing passengers to Emirates without significant benefits.

Read more: Qantas stays mum about domestic fall



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[eastwest101]

Pretty ugly numbers for QFi - and not at all encouraging for QFd and JQd either!

Another interesting thing was that Revenue Seat Factors were negative and down across the board in all QF and JQ divisions - except for JQ Asia!

 

[Must...Fly!]

The raw passenger number is of little consequence given what has happened, however the RPK figure of QFi is very concerning.

 

[here2go]

The raw passenger number is of little consequence given what has happened, however the RPK figure of QFi is very concerning.

Perhaps QFi should be replacing JQi on routes certain monopoly routes, lest they get competition from other airlines (eg Silkair now fly DRW-SIN)

 

[Flying Fox]

Bit of an aside but would RPK include -

1. ASA flights?

2. Classic award flights?

Thanks

 

[lovestotravel]

I have said it before and I'll say it again

Use and burn up your Qantas points now before they are enhanced!

Tim Clark - Going to be interesting

 

[yohy?!]

I have said it before and I'll say it again

Use and burn up your Qantas points now before they are enhanced!

Tim Clark - Going to be interesting

This is a good point - QFF is such a cash cow if they needed a 'rabbit out of the hat' to goose the figures for next year there would be nothing to stop them devaluing everyone's points say 25% which would go straight to the bottom line EBITDA right? Possibly they could even do it by removing the availability on certain high cost routes, ah the possibilities when one 'prints' their own money in points.

 

[markis10]

Bit of an aside but would RPK include -

1. ASA flights?

2. Classic award flights?

Thanks

Yes, points redeemed are revenue.

 

[marks]

Notice that the amount of international miles/flight offered is down as well.

QF is becoming an asian reseller of BA & (and perhaps soon EK) flights to europe. Without the innovation, they will only reward bean counters and cost cutters.
You don't need new planes if you move your customers on others metal.

 

[markis10]

Notice that the amount of international miles/flight offered is down as well.

QF is becoming an asian reseller of BA & (and perhaps soon EK) flights to europe. Without the innovation, they will only reward bean counters and cost cutters.
You don't need new planes if you move your customers on others metal.

RPKs and ASKs are the key metrics, and the picture is not great, codeshares are part of this metric.

 

[JohnK]

Not good. The decline is quicker than I thought.

Use and burn up your Qantas points now before they are enhanced!

I am starting to think my idea to hoard QFF points is not so brilliant.

 

[harvyk]

I have to say, I'm not yet worried about the future of QF, and something tells me they will still be around in a year as something more than just a parent company for JQ, and still flying it's own metal around both dom and int.

That said, if I was sitting on the board, I would be wanting to come up with some brilliant idea's fast lest I become the sacrificial lamb. I think some very high up people in QF are going to find themselves in the centrelink queue before too long.

I think one of the big problems is QF have not had a real competitor in the last 10 years, and they have forgotten how to really compete at this end of the market. Building LCC's are find to compete against another LCC, but they are now going up against another full service carrier domestically taking them on at their own game, and routes which they had a near monopoly on only a few years ago (think the AU-US market) they are now sharing with 3 other carriers.

They only rely on the "spirit of australians" for so long before we also tested out this other carrier which has the word Australia in it's name (a very smart move on behalf of DJ / VA)