News Briefs

    Qantas Airways Group pax numbers up 2% at 26.8m with 81% load factor in H1FY2017

    Qantas Airways Group passenger numbers up 2% – traffic highlights for 1HFY2017:

    • Passenger numbers: 26.8 million, +2.1% year-on-year;
      • Qantas Domestic*: 11.3 million, +1.0%;
      • Qantas International: 3.3 million, +3.7%;
      • Jetstar Domestic: 6.8 million, -1.9%;
      • Jetstar International: 3.1 million, +15.3%;
      • Jetstar Asia: 2.1 million, +1.6%;
    • Passenger load factor: 81.0%, -0.2 ppt;
      • Qantas Domestic: 77.3%, +0.8 ppt;
      • Qantas International: 81.3%, -2.0 ppts;
      • Jetstar Domestic: 83.6%, -1.2 ppts;
      • Jetstar International: 83.5%, +3.0 ppts;
      • Jetstar Asia: 81.9%, +1.7 ppts.

     

    Qantas Group underlying results exceed expectations in H1FY2017

    Qantas Group revenue down 3% – financial highlights for six months ended 31-Dec-2016:

    • Total revenue: AUD8184 million (USD6166 million), -3.3% year-on-year;
      • Passenger: AUD7064 million (USD5322 million), -3.3%;
      • Freight: AUD416 million (USD313 million), -9.2%;
    • Total costs: AUD7235 million (USD5451 million), -2.7%;
      • Labour: AUD2027 million (USD1527 million), +6.0%;
      • Fuel: AUD1489 million (USD1122 million), -13.2%;
    • Underlying EBIT: AUD949 million (USD715 million), -8.0%;
      • Qantas domestic: AUD371 million (USD279.5 million), -4.1%;
      • Qantas international: AUD208 million (USD156.7 million), -23.0%;
      • Jetstar Group: AUD275 million (USD207.2 million), +5.0%;
      • Qantas Freight: AUD27 million (USD20.3 million), -28.9%;
      • Qantas Loyalty: AUD181 million USD136.4 million), +2.8%;
    • Net profit: AUD515 million (USD388 million), -25.1%;
    • Passengers: 26.8 million, +2.1%;
    • Passenger load factor: 81.0%, -0.2 ppt;
    • Revenue per ASK: AUD 8.0 cents (USD 6.0 cents), -5%;
    • Cost per ASJ: AUD 6.9 cents (USD 5.2 cents), -5%;
    • Cost per ASK excl fuel: AUD 5.0 cents (USD 3.8 cents), +2%;
    • Total assets: AUD17,243 million (USD12,991 million);
    • Cash and cash equivalents: AUD1668 million (USD1257 million);
    • Total liabilities: AUD13,566 million (USD10,221 million). [more – original PR]

    *Based on the average conversion rate at AUD1 = USD0.753416

     

    Qantas maintains operating margin, hits debt targets during H1FY2016/17

    Qantas reported (23-Feb-2017) the following key financial framework highlights for H1FY2016/17:

    • Net debt of AUD5970 million (USD4595 million), within the target range of AUD4.8 billion to AUD6 billion (USD3.7 billion to USD4.6 billion), with capital expenditure weighted towards 1H2017/16;
    • Maintained investment grade credit rating with Standard and Poor’s and Moody’s Investor Services;
    • Used cash in excess of short-term requirements to refinance operating leases to minimise cost of capital;
    • Returned AUD409 million (USD314.9 million) to shareholders in 1H2016/17, via AUD275 million (USD211.7 million) share buyback and dividend payment of AUD134 million (USD103.2 million), paid in Oct-2016;
    • AUD219 million (USD168.6 million) in capital management initiatives to be returned to shareholders, including ordinary dividend of AUD128 million (USD98.5 million) and the completion of share buyback, of which AUD91 million (USD70 million) remains;
    • Stable operating margin of 12%, achieved in an environment of “mixed global trading conditions”. Margin realised through unit cost reduction of 5%, which offset a 5% decrease in unit revenue.

     

    Qantas Group: All business segments achieve ROIC of better than 10%

    Qantas Group reported (23-Feb-2017) all of its business segments continue to deliver return on invested capital (ROIC) of greater than 10%, with the portfolio benefitting from stable earnings from the Qantas Group’s domestic airlines and the Qantas Loyalty segment.

    • Domestic airlines (Qantas Domestic and Jetstar Domestic) continued to achieve the highest and second highest margins in the “structurally advantaged” Australian domestic market. Margin improvement continues via the Qantas ‘Transformation Program’;
    • International airlines (Qantas InternationalJetstar International and Jetstar Asia) grow in “attractive” markets through increased utilisation of existing fleet. International network expansion has been achieved with limited capital investment through Qantas Group’s alliance partnerships;
    • Qantas Freight maintained the highest domestic freight market share and it is “well positioned to tap into the growing Australia to China freight market”;
    • Qantas Loyalty membership reached 11.6 million and in 1H2016/17 it launched a new and improved Woolworths program and continues to grow through a diversified portfolio.

     

    Air New Zealand results decline in H1FY2017, expects improvements in 2H

    Air New Zealand revenue down 4% – financial highlights for six months ended 31-Dec-2016:

    • Revenue: NZD2584 million (USD1851 million), -4.2% year-on-year;
      • Passenger: NZD2215 million (USD1587 million), -4.0%;
      • Cargo: NZD171 million (USD122.5 million), -8.6%;
    • Costs: NZD1886 million (USD1351 million), -0.1%;
      • Labour: NZD623 million (USD446 million), +0.6%;
      • Fuel: NZD390 million (USD279.4 million), -19.4%;
    • Operating profit: NZD698 million (USD500 million), -13.9%;
    • Net profit: NZD256 million (USD183 million), -24.3%;
    • Yield:
      • Domestic: NZD 25.9 cents (USD 18.6 cents), -5.5%;
      • Tasman and Pacific Islands: NZD 115 cents (USD 8.2 cents), -5.2%;
      • International: NZD 9.4 cents (USD 6.7 cents), -12.0%;
    • Total assets: NZD7291 million (USD5223 million);
    • Bank and short-term deposits: NZD1288 million (USD923 million);
    • Total liabilities: NZD5255 million (USD3765 million).

     

    Qantas Group to repurchase approximately 5% of issued share capital over FY2016/17

    Qantas Group reported (23-Feb-2017) it repurchased AUD275 million (USD212 million) shares in H1FY2016/17, reducing overall issued shares by 4%. The carrier has a further AUD91 million (USD70 million) remaining in its allocated for share buy back during 2H2016/27, which will reduce overall issued shares by another 1%. Where there is a surplus, the Qantas Group will distribute a dividend every six months to be supplemented with other capital initiatives should additional surplus exist.

     

    17 regional airlines in Australia have collapsed since Rex commenced operations in 2002: Rex

    Regional Express (Rex) GM network strategy & sales Warrick Lodge stated (21-Feb-2017) there have been 17 regional airline collapses since Rex commenced operations in 2002. Mr Lodge said: “Even with Rex’s efficiencies associated with operating more than 50 aircraft on 75,000 flights per year, Rex’s FY16 operational profit before tax amounted on average to only $4 per passenger flight hour of over 400km, while it spends $185 paying for the cost of flying the same passenger. A taxi driver makes much more profit on the 10km trip from Adelaide Airport to the city”.

     

    Qantas Group expands fleet by five aircraft over 1HFY2016/17

    Qantas Group reported (23-Feb-2017) the following fleet highlights for H1FY2016/17:

    • Expanded group fleet from 303 to 308 aircraft, with the addition of:
      • Two A321-200s;
      • Three Fokker F100s;
    • Increased cross-utilisation of A330-200 and Boeing 737-800 equipment between Qantas International and Qantas Domestic, optimising capacity to match demand;
    • Continued “capacity right sizing” in the domestic markets to meet demand through:
      • Downgauge of 737-800 services to Boeing 717 equipment;
      • Downgauge of 717 services to F100 equipment;
      • Downgauge of 717 services to Bombardier Q400 equipment.

     

    Japan Airlines to deploy 777-300ER on select Sydney services in May-2017, Jul-2017

    Japan Airlines plans to deploy Boeing 777-300ER, instead of 787-9 aircraft, on Tokyo Narita-Sydney service on 05-May-2017, 06-May-2017, 27-Jul-2017 and 28-Jul-2017 (Airline Route, 22-Feb-2017). The carrier currently operates daily on the route with 777-300ER aircraft, according to OAG, changing to 787-9 operations at the commencement of the summer 2017 schedule.

     

    Qantas net passenger revenue dragged down by resources market and international yields

    Qantas Group attributed a 3% year-on-year decrease in H1FY2016/17 net passenger revenue to an AUD50 million (USD38.5 million) reduction in the domestic resource market and continued international yield pressure. Benefits derived from the group’s ‘Transformation Program’ offset inflation and the cost of additional capacity resulting in flat operating expenses (excluding fuel). A reduction in the group’s fuel expense was driven by lower AUD fuel prices and fuel efficiency measures in the ‘Transformation Program’.

    Malaysia Airlines announces sales and marketing appointments in Australia

    Malaysia Airlines appointed (22-Feb-2017) Donna Jones as sales executive for Western Australia, Michaela Kemp as sales executive for South Australia and the Northern Territory and Melinda Voon as brand and communication manager. Ms Jones held similar positions at Flight Centre and Trafalgar Western Australia while Ms Kemp was previously at Garuda Indonesia and Air Paradise. Ms Voon most recently oversaw marketing and communications for Tourism Malaysia Sydney.

     

    Air New Zealand outlines fleet plan: interim report

    Air New Zealand outlined (22-Feb-2017) its fleet plan which includes aircraft-related capital expenditures of NZD1.6 billion (USD1.1 billion) forecast through 2021, with the majority being spent in FY2018 and FY2019. Its Boeing 787-9 fleet has grown to nine following three deliveries over 2H2016 with a further four expected. More A320ceos and ATR 72-600s will join the fleet as part of the carrier’s domestic capacity increase. The carrier also completed the exit from service of its Beechcraft 1900D fleet following the closure of its Eagle Air subsidiary and will exit the last 767-300ER in Mar-2017. Air New Zealand has begun refurbishing its 777-300ER fleet which will see the removal of its current space seat product in favour of a Zodiac Aerospace seat which is used in the 787-9s and 777-200ERs.

     

    Qantas forecasts continued falls in unit revenue, fails to release full year profit guidance

    Qantas Group released (23-Feb-2017) outlooks for H2FY2016/17 and FY2016/17:

    H2FY2016/17

    • Group capacity to increase by 1%-2%;
    • Group Domestic capacity expected to decrease by ~2%;
    • Unit revenue expected to increase in H2FY2016/17, despite continued softness in resources sector;
    • Resource sector revenue expected to be down AUD30 million (USD23 million) in H2FY2016/17, compared to previous corresponding period;
    • Group International capacity expected to increase by ~3%, driven by impact of previously announced changes, using existing Group fleet to target growing Asia markets;
    • Unit Revenue declined 7% in H1FY2016/17, with this trend expected to moderate in H2FY2016/17 on 6% competitor capacity growth;
    • Qantas Loyalty expected to return to double digit growth in H2FY2016/17, with full six month contribution from Woolworths.

     

    FY2016/17 operating expectations:

    • Underlying fuel cost expected to be no more than AUD3.2 billion to AUD3.13 billion (USD2.5 billion to USD2.4 billion) at current forward AUD prices;
    • Depreciation and amortisation expense expected to be AUD170 million (USD131 million) higher than FY2015/16;
    • Non-cancellable aircraft operating lease rentals expected to be ~AUD100 million (USD77 million) lower than FY2015/16;
    • Transformation benefits (cost, fuel efficiency and revenue) expected to be USD450 million (USD346 million);
    • Inflation impact on expenditure forecast to be ~AUD250 million (USD192 million);
    • Net capital expenditure expected to be AUD1.5 billion (USD1.2 billion);

    Having regard to industry and economic dynamics, Qantas stated that it will not provide a group profit guidance “at this time”.

     

    Rex questions need to extend Mount Gambier Airport

    Regional Express (Rex) GM network strategy & sales Warrick Lodge, responding to reports of a proposed upgrade of Mount Gambier Airport, questioned (21-Feb-2017)  the need to extend runway at Mount Gambier Airport beyond the 1524m that is currently available in order to accommodate aircraft such as the 74 seat Bombardier Q400. He noted that QantasLink has either past operated, or currently operates, Q400 aircraft into many airports that have runway lengths that are less than or comparable in length with the 1524m that is available at Mount Gambier.

     

    Qantas Group reports net capital expenditure of USD770m in H1FY2016/17

    Qantas Group reported (23-Feb-2017) net capital expenditure of AUD1 billion (USD770 million) for H1FY2016/17.

     

    Air New Zealand pleased with interim result despite profit drop

    Air New Zealand chairman Tony Carter described (22-Feb-2017) the interim profit as an impressive result in the face of unprecedented competitive capacity into the New Zealand market. CEO Christopher Luxon says the swift response from the Air New Zealand team, focused on strong cost discipline and leveraging efficiencies within the operations, helped to ease some of the revenue pressure from new competitors and was a major driver of the strong result. Lower fuel prices were a benefit to operating costs in the period, but the positive fuel impact was partially offset by adverse changes in foreign exchange. Mr Luxton said, “We modified our capacity plans, accelerated the exit of older aircraft and made sure we were managing our costs well”. Air New Zealand announced an interim result of a net profit of NZD256 million (USD184 million).

     

    Air New Zealand declares interim dividend of USD0.07 per share

    Air New Zealand declared (22-Feb-2017) an interim dividend of NZD0.10 (USD0.07) per ordinary share following the release of its half year ending results on 31-Dec-2016. Total dividends payable will be NZD112 million (USD80.3 million) and will be released to shareholders on 17-Mar-2017. Air New Zealand’s dividend reinvestment plan is currently suspended. Chairman Tony Carter said, “Based on the strength of the result, and the airline’s financial position, future capital commitments and trading environment, the Board felt it appropriate to maintain the level of the interim dividend”.

     

    Air New Zealand’s diversified network proves successful: CEO

    Air New Zealand CEO Christopher Luxton stated (22-Feb-2017) the carrier’s diversified network across the Pacific Rim and throughout New Zealand has proven successful, with strong performances from both the Auckland-Houston and Auckland-Buenos Aires routes in their first year of operation. The carrier’s “Better Way to Fly” campaign in Australia has also helped to increase North and South American traffic. Alliance partnerships, including Singapore Airlines and Cathay Pacific, are providing support and stability during a period of heightened competition. Competition on routes to North America and Asia has sharply increased with new entrants at the carrier’s Auckland hub, mainly US and Chinese carriers. Air New Zealand’s domestic network continues to see growth due to a stable economy and increased tourism numbers which are helping support the carriers increased capacity with additional Airbus A320ceos and ATR 72-600s.

     

    India Cabinet approves MoU between India and Australia on aviation security

    India Cabinet chaired by the Prime Minister Narendra Modi approved (22-Feb-2017) the signature of a MoU between India and Australia for promotion and development of cooperation in civil aviation security. The MoU will provide an opportunity to Indian aviation security authorities to share the expertise of their Australian counterparts and enhance the overall aviation security environment in India. The MoU will provide compliance of international obligation as well as enhance promotion in the area of security cooperation between the two countries.

     

    Rex to ‘severely’ downgrade Mount Gambier service if airport expansion project is launched

    Regional Express (Rex) GM network strategy & sales Warrick Lodge, responding to reports of a proposed upgrade of Mount Gambier Airport, stated (21-Feb-2017) it intends to operate Saab 340 aircraft for “at least another 15 years” and intends to “continue servicing Mount Gambier airport over this timeframe if the airport head tax remained at the current level”. He added that it would be “almost certain that Rex’s services will be severely downgraded, if not withdrawn, if Council embarks on this cavalier exercise to significantly expand the airport with the inevitable sharp increase of the airport head tax that follows.” He urged the District Council to “learn from its past mistakes and not to gamble with the future of the community’s air service for the sake of its unrealistic grandiose visions”.

     

    Tiger Melbourne-Townsville service the first under Qld Attracting Aviation Investment Fund

    Queensland Tourism welcomed (22-Feb-2017) the new Tigerair three times weekly Melbourne-Townsville service from Jun-2017, with the new service being the first domestic service to be supported by the Queensland Government’s Attracting Aviation Investment Fund (AAIF). Queensland Premier Annastacia Palaszczuk stated: “From June this year, this new Melbourne to Townsville service is estimated to inject an additional AUD12.5 million in overnight visitor expenditure and deliver 28,000 more seats into the region each year”. The Premier said the Fund had attracted more than 500,000 seats on international flights, but Tigerair boosted interstate flights into regional Queensland.

     

    Tourism New Zealand notes target to assist 60 conference bids p/a

    Tourism New Zealand stated (23-Feb-2017) it has a target to assist 60 conference bids p/a. In the in 2015/16 financial year, 71 international bids were achieved with 72% success rate. The target was also exceeded in the previous financial year. The Tourism New Zealand bid team is focussed on promoting New Zealand as a compelling business events destination in the core markets of AustraliaChina, South East Asia, USA and the Global Association market.

     

    Qantas Loyalty reports increased membership to 11.6m

    Qantas Group’s 1H2017 interim report noted a record result for the groups frequent flyer arm Qantas Loyalty. Qantas Loyalty increased revenue from new ventures, including insurance and new arrangements with Woolworths, and increased membership levels to 11.6 million.

     

    Qantas resource sector revenue to fall in 1H2017; to stabilise in FY2019

    Qantas Group CEO Alan Joyce announced (23-Feb-2017) he expects revenue from Australia’s resource sector travel market will continue to decline in 1H2017. Mr Joyce expected the revenue from the resource sector to stabilise in FY2019.

     

    Qantas closes cost gap against Virgin Australia

    Qantas Group CEO Alan Joyce stated (23-Feb-2017) the carrier’s domestic arm met its goal of closing the cost gap against Virgin Australia to within 5% as part of its Qantas Transformation programme launched in 2014. Mr Joyce stated, “That’s an outstanding performance by any measure, and it reflects the strength of the dual brand strategy”.

     

    Jetstar Group’s international operations deliver strong result

    Jetstar Group reported (22-Feb-2017) a half year profit of AUD275 million (USD211 million) with strong performance in both domestic and international markets. Qantas Group CEO Alan Joyce said Jetstar Group’s international operations had a strong result for H1FY2017 due to growing demand between Australia and places like Indonesia and Thailand.

     

    Air New Zealand grows network with new routes, capacity increase and upgauges for 2H2016

    Air New Zealand’s announced (22-Feb-2017) capacity (ASK) increased 7.1% with new international services, upgauging to larger aircraft and domestic network growth. Demand (RPK) dropped behind capacity growth at 5.5%, resulting in a decreased load factor of 83.1%. RASK for the Air New Zealand Group declined 10.4% on account of increased competition both domestically and internationally. International long-haul capacity increased 8.8% due to the full 2H2016 Impact of new international routes to Houston and Buenos Aires, as well as the commencement of seasonal international routes to Ho Chi Minh City and Osaka Kansai. Demand (RPK) on international long-haul routes increased 7.3%, with load factor down by 1.2 points to 84.9%.

    Qantas one of the best performing airline groups: CEO Alan Joyce

    Qantas Group CEO Alan Joyce said (22-Feb-2017) its H1FY2017 underlying profit before tax result of AUD852 million (USD654 million) “confirms that Qantas is one of the best performing airline groups in the world”. Mr Joyce noted the result is lower than last year’s record level citing strong competition and lower fuel prices driving prices down. Despite changing market conditions Mr Joyce said, “we are still delivering a much better margin than our main competitors”.

     

    Air New Zealand 1H2017 maintains positive outlook: chairman

    Air New Zealand chairman Tony Charter expects (22-Feb-2017) a positive lookout for H2FY2017 with expected revenue growth. Increased fuel prices are expected to impact results, but based on current market conditions the carrier is targeting FY2017 pre-tax profit between NZD475 million (USD341 million) and NZD525 million (USD377 million).

     

    Qantas outlines H2FY2017 outlook; plans overall capacity increase

    Qantas Group plans (23-Feb-2017) to increase its overall capacity between 1%-2% for H2FY2017 compared to H2FY2016. Domestic capacity is expected to decreased by 2% in H2FY2017 due to continued pressure in the domestic market. Resource sector revenue is expected to fall by AUD30 million (USD23 million) in H2FY2017. International capacity is expected to increase 3% in H2FY2017 with a focus on targeting growing Asian markets including Melbourne-Tokyo Narita and Sydney-Beijing services.

     

    Qantas fleet update: H1FY2017 report

    Qantas Group released (23-Feb-2017) details for its fleet plan in response to changing market conditions. During H1FY2017 three Fokker F100s were added to subsidiary Network Aviation to operate on mainline routes, allowing for capacity reductions in its resources sector operations. Jetstar added two leased A321s to meet demand in short-haul domestic leisure market and plans to defer deliveries of its first A320neo until FY2019. Qantas international division will add its first two Boeing 787-9s in late 2017, enabling the retirement of its two oldest 747-400s by mid-2018. Five 747-400s will be retired as eight 787-9s enter service. Nearly 60% of the Group’s fleet is now debt-free, giving it an unencumbered asset base valued at more than AUD4.9 billion (USD3.8 billion).

     

    Qantas continues with fleet and customer experience investment plan

    Qantas Group CEO Alan Joyce stated (23-Feb-2017) the carrier will continue investing in its fleet and customer experience throughout 2017. These investments include new lounges at Brisbane domestic and London Heathrow as well as the introduction of Boeing 787-9s and resulting retirement of its 747-400 fleet. Over 100 A330s and 737-800s have been upgraded, and new lounges have opened in SingaporeHong Kong, Los Angeles, Brisbane International, Perth and Darwin.

     

    Qantas announces USD0.05 dividend for H1FY2017

    Qantas Group announced (23-Feb-2017) it will distribute AUD219 million (USD168 million) to shareholders. This includes a AUD0.07 (USD0.05) share dividend and the remaining AUD91 million (USD69.8 million) of the buy-back announced in Aug-2016. Once completed, Qantas Group will reduce the number of shares by 18% and will have returned AUD1.6 billion (USD1.2 billion) to shareholders since 2015.

     

    Qantas Group transformation unlocks USD1.5bn in revenue since 2014

    Qantas Group CEO Alan Joyce stated (23-Feb-2017) the group has unlocked AUD1.9 billion (USD1.46 billion) since launching its Qantas Transformation project in 2014. Mr Joyce said the group will be targeting an annual average of AUD400 million (USD307 million) in cost and revenue benefits to ensure a sustainable business for the long term.

     

    Qantas Freight maintains domestic share, eyes China

    Qantas Group stated (23-Feb-2017) its Qantas Freight division has the highest domestic freight market share in Australia. Qantas Group’s H1FY2017 report stated Qantas Freight is well positioned to tap into the growing Australia-China freight market.

     

    Qantas unveils new premium economy seat to debut when 787-9s arrive

    Qantas unveiled (23-Feb-2017) its new premium economy seat, which will debut on the airline’s fleet of Boeing 787-9 aircraft from Oct-2017. The aircraft will have a separate cabin of 28 seats, configured in a two-three-two layout. Major features include:

    • Unique ergonomic reclining motion;
    • Increase in width of almost 10% compared to Qantas’ existing premium economy seat, as well as increased recline;
    • Headrest which can be fitted with a specially designed pillow;
    • Re-engineered footrest;
    • 25% larger, high-definition Panasonic inflight entertainment seatback screens;
    • Five individual storage compartments and two USB charging points per seat, as well as shared AC power and a personal LED light.

    Qantas’ 787-9 will seat 236 passengers across business, premium economy and economy classes .The first of eight aircraft will be delivered in Oct-2017. Qantas’ first international 787 operations are to commence in Dec-2017, with Melbourne-Los Angeles service.

    Qantas and El Al to launch codeshare partnership; Israel and Australia sign ASA

    Qantas and El Al signed (23-Feb-2017) a MoU to deepen the relationship between the two carriers, subject to government and regulatory approvals. The partnership focuses on linking Qantas services between Australia and Asia to EL AL services between Asia and Tel Aviv. It will also connect Qantas services from Sydney to Johannesburg with EL AL services from Tel Aviv to Johannesburg. The MoU signing followed the signing of a new Air Services Agreement between Australia and Israel. Qantas and EL AL currently have an interline arrangement with the codeshare agreement to also include reciprocal lounge access. The codeshare flights will go on sale during 2H2017.

    Qantas to defer delivery of A320neo to Jetstar to FY2019

    Qantas announced (23-Feb-2017) it will defer introduction of the A320neo at Jetstar until FY2019. The carrier had originally planned to introduce the aircraft by the end of calendar year 2017. Jetstar has 99 A320neo aircraft on order. Qantas Group CEO Alan Joyce said the decision was taken due to a “change in strategic priorities” and the change reflects the strategic flexibility that Qantas Group has with its fleet plans, which includes the ability to make short-term adjustments.

    Qantas sees positive reaction to new Beijing service; closing gap on Shanghai market

    Qantas International CEO Gareth Evans stated (23-Feb-2017) China is an “incredibly important” market for Qantas. Mr Evans said the carrier has seen a positive reaction to new Beijing services, which are doing “very well”. He noted that bookings to Beijing are “closing the gap” on the established Shanghai market, a positive sign for the airline. He noted the benefit the carrier has in its partnerships with China Eastern AirlinesChina Southern Airlines and Cathay Pacific, while noting that its main competitors are actually from non-direct markets.

    Japan is a ‘very good’ market for Qantas

    Qantas International CEO Gareth Evans stated (23-Feb-2017) Japan is a “very good” market for the carrier, with the carrier seeing increased and “strong” travel demand in the market.

    Qantas sees ‘fine’ demand on US services

    Qantas International CEO Gareth Evans stated (23-Feb-2017) the carrier is experiencing “fine” demand on US services, while noting a “reasonable” amount of capacity growth in the market, which is having a negative RASK impact. He said San Francisco services are doing “extremely well” for the carrier. He said the so-called Trump effect is having “no demand impact” for Qantas and the US is in a “good position”.