Qantas Yields Turnaround

Submitted by Share Trading on 11 March, 2010 - 10:36

Qantas yields are turning around its decline - with the average air fare price bottoming out last year. However, the Airline's monthly traffic figures show domestic yields for the first seven months of the current financial year are 6 percent less than the rquivalent period last year for Qantas and subsidiary - Jetstar. International yields for the airline group are 20 percent lower compared to last year.

But the turnaround is apparent as the yields improve from month to month. Airlines havea measurement called the revenue seat factor which is a number which represents the seats occupied by paying passengers. For the Qantas group, this number fell by 0.6 percent to 81.2 percent. The Qantas international flights have been affected by increased competition with an increased supply on many routes to US, Europe and New Zealand paired with waning demand. Cathay Pacific gave the travel sector some optimism yesterday with a profit of $HK4.7 billion ($A660 million) for the full year, compared with a loss of $HK8.7 billion previously. Qantas is having a little trouble with its partly owned travel agency companies.