Here's my take on the issue:
Likewise, the Sale fares for the BNE-SYD route have increased dramatically. In 2004, it was common to get a sale fare (and sales were more common I'm sure) for $69-$75. Now the sale fares go as low as $95 and require a $4.40 credit card booking fee or BPay. The increase in the fare itself is well in excess of 20%.
But I'm going to put my economic hat on here:
At the end of the day, it all comes down to supply and demand. Qantas are managing to fill their seats due largely to them being an inelastic airline (in that the majority of their revenue is from corporates who fly Qantas and probably still will) and this is generating shareholders dividends with an expected profit of $1.23 billionm, one of the most profitable airlines in the world. By raising the fares $6 or $10, those who want to fly Qantas will still fly Qantas and those that don't will look either at QF's LCC Jetstar or Virgin. It will be interesting to see if DJ also raise their fares?
And my personal hat:
It does suck a little that they can put this squeeze in place. When I fly for leisure I fly Qantas domestically and pay the extra to fly my family QF if they fly with me. The sighted BNE-SYD route is one that I used to fly regularly for leisure and the increase is like a stab in the back for loyalty. But then when there is only $30 between DJ and QF, and I look at the benefits of flying QF with lounge access and FF points, its worth it.
QF, My only qualm is that we were told a week ago that just the higher fares (ie. corporate fares) would be increased and now with no warnings or announcements, its sprung on us.
Then again, if the increase only lasts until the Tiger emerges later this year, they might have paid off their ads about loyalty to Australians. :!:
