Qantas is bullish on prospects for continuing yield improvement, forecasting 1H2010-11 underlying profit before tax will be “materially stronger” year-on-year (The Australian, 13-Aug-2010). CEO, Alan Joyce, stated Qantas mainline operations have returned to being the most profitable carrier earlier than expected. He also commented that yields are improving on key US and UK routes. An improvement in domestic operations was attributed to a recovery in business demand, with the carrier’s yield premium over competitors returning to pre-global financial downturn levels. Mr Joyce also stated the recent softness in domestic leisure demand is easing this quarter, boosting Jetstar’s performance. However, the CEO stated he could not estimate when yields would return to the benchmark 2008 levels.
Qantas: “We thought we would get closer to 7 (%) but the volcano and some of the domestic competition means we didn't quite get to that number. But the trend is continuing and we're seeing in the first quarter ... a number better than the minus 9%,” Alan Joyce, CEO. Source: The Australian, 13-Aug-2010.