Qantas to expand internationally as business demand improves
Qantas CEO, Alan Joyce, stated the carrier plans to expand internationally, as he is optimistic of a recovery in the international Business market, despite the carrier suffering a dive in profits in the market (Bloomberg, 14-Aug-2010/The Australian, 16-Aug-2010).
- Business demand: The CEO stated he has already noticed signs of recovery on key international routes, with yields up 12% year-on-year in the final few months of the year. The improving demand is being led by strong recovery in Asian business markets, with the UK and US markets also expected to bounce back. He also said the carrier has been able to maintain its share of key corporate markets internationally, despite the downturn.
- Growth: Mr Joyce also said bookings so far this year are “very good” and have risen since 01-Jul-2010 (Bloomberg, 13-Aug-2010). Growth is to be underpinned by Jetstar, with the carrier planning to increase capacity by double digits this year.
Qantas: “If it wasn't for the volcanic disruption that cost us AUD46 million in the last quarter of the year, the UK route would have gone back into profits. And it's pleasing that we're seeing an improvement in the US route, where our Australia to LA service is getting close to break-even again. That's a big improvement on where it was previously … For us, it's all about that corporate market returning and starting to fly again. That's where we get the best leverage. We're very optimistic about the international markets coming back into profits,” Alan Joyce, CEO. Source: The Australian, 16-Aug-2010.