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30-Sep-2010 11:18 AM

Qantas sees higher international yields, expects benefits from rising AUD

Qantas CEO Alan Joyce stated the carrier is seeing higher international yields of around 12-14%, but “still has a long way to go to get back to [pre-global financial downturn] levels” (Dow Jones, 29-Sep-2010). Mr Joyce commented that its Asian yields are outperforming others, including Europe. Mr Joyce stated he expects the Australia-US route to become profitable for Qantas in 2010 but added it remained dependent on a recovery in the business market and less fare discounting (Sydney Morning Herald/The Australian, 30-Sep-2010). He added it would be a positive for airlines if US regulators dropped  their opposition to Virgin Blue's proposed agreement with Delta Air Lines on the US-Australia route, adding it would lead to a much-needed reduction  in capacity on the sector. Mr Joyce also welcomed the rising Australian dollar against the US dollar, stating “with our costs there is a very big positive impact” (The Financial Review, 30-Sep-2010). The carrier spends more than USD3 billion p/a on fuel, which it purchases in USD. The rising AUD will also benefit its Boeing and Airbus aircraft orders, worth USD22 million.  

Qantas: ''We believe [the alliance] is a positive thing for the trans-Pacific route to be granted because … rationalisation is  needed," Alan Joyce, CEO. Source: Sydney Morning Herald, 30-Sep-2010.

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