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Qantas and Air NZ domestic yields under considerable pressure

Analysis

Rising competition is starting to bite into earnings at the leading Australasian airlines. Qantas reported domestic yields excluding exchange (covering Qantas, QantasLink and Jetstar) for the seven months to 31-Jan-08 rose 1.2% year-on-year. The previous time Qantas released traffic data, for the five months to 30-Nov-07, domestic yields had increased 3.5%, indicating 4.5 average reductions in yield in the intervening two months.

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