Qantas chief predicts cutbacks in discount airlines

Will average airfares rise as local market reaches capacity?
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  • Updated:4 Jun 2014

01.Qantas chief predicts major reduction in discounted airfares

Qantas jumbo

It's been reported this morning that Qantas CEO Alan Joyce predicts that Australians will see cutbacks in discounted airfares as the local market hits capacity.

Mr Joyce, who was speaking at the annual meeting of the International Air Transport Association (IATA) in Doha, Qatar has been reported as saying ''It is very clear that the capacity situation in the domestic market has hit everybody's profitability. ''

Mr Joyce also said that while discount fares would still be offered by Qantas, fewer would be available once the airline was filling seats comfortably.

Qantas has also reportedly said it will freeze domestic capacity at the beginning of the 2015 when consumer confidence is low and demand in the resources sector slows.



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