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Qantas states Premium demand remains weak

12-Nov-2009 11:23 AM

Qantas CEO, Alan Joyce, stated Premium demand continues to be weak, with the carrier considering reducing the proportion of Premium seats on international services as a result (Dow Jones/The Age/The Australian, 12-Nov-2009). However, Mr Joyce stated he was confident Premium demand would return eventually, but that carriers would need to adjust their products to stimulate demand. Mr Joyce stated leisure demand is improving, allowing it to increase its domestic airfares. According to the CEO, load factors remain strong for the carrier, currently at 84%, but yields are “still depressed internationally”, down approximately 20% year-on-year at present. Mr Joyce stated lower yields would ''take some time to wash out of the system because we…still have a lot of cheap air fares in our inventory”.

Qantas: ''…we are not seeing an improvement in business traffic - that is still some time off. Our position at the moment is being strengthened by the leisure market, not the business market…So far from joining the pessimists, we believe there is a big opportunity to invigorate premium flying in a new era," Alan Joyce, CEO. Source: The Age, 12-Nov-2009.