the number of passengers flying domestically in april 2022 was the highest it has been
since the pandemic began but jet fuel prices have searched record levels and airfares are
set to increase in the upcoming months the aecc's latest airline competition in australia
report reveals hit the like button to show your support and in today's video we're going
to talk about the situation at contests so without any further ado let's begin qantas
airways and virgin australia have not seen any dent in domestic bookings from higher
inflation and interest rates but fares must rise to help them recover some of the cost
of elevated oil prices their chief executives said on sunday australia's two biggest airlines
are operating domestic capacity above pre-pandemic levels as demand rebounds but qantas has trimmed
some flights for july and august to try to boost fears and could take more action its
chief executive said on the sidelines of an industry conference in doha qantas has hedged
90 of its fuel needs through the end of june and 50 in the following quarter the extra
cost meant it would need to rebalance capacity and fears in response the cuts to domestic
flying levels for july and august are being deepened with capacity moving from 107 percent
of pre-covered levels to 103 percent quanta said these additional reductions will progressively
flow into industry booking and reservation systems in the coming days the group will
continue to monitor market conditions and adjust capacity as needed qantas said the
changes should not materially impact customers because of the large number of flights on
most routes and could lead to a higher seat factor on flights across the group it has
already restarted its lucrative perth to london non-stop service but it expects group-wide
international capacity to remain unchanged at just under 50 percent of pre-covered levels
by the end of july it believes that figure could rise to about 70 by the end of september
in a market update on friday the airline forecast is what it make a significant loss this year
of between 450 million dollars and 550 million dollars with qantas group predicting it would
return to underlying profit in the next financial year the price of jet fuel has skyrocketed
since the easing of kobe 19 restrictions with asia and oceania seeing prices climb higher
than the global average the price of a barrel of fuel in asia and oceania hit 175.66 dollars
up by more than 130 since the last time europe the price of fuel in the region has increased
by 28 in the last month alone international routes will not be affected by the changes
it announced it will give 19 000 employees a 5 000 payment once the new enterprise bar
gaining agreements covering them are finalized quantus will spend about 87 million on staff
payments the payment comes after a two-year company wide wage freeze however virgin qantas
and jetstar reported that they expect to be flying at or above pre-pandemic levels in
the coming months quantus has also said the demand for business travel is recovering faster
than expected with small business demand above pre-pandemic levels and larger corporate traffic
at 85 in may qantas has been heavily criticized for delayed baggage and poor on-time performance
this year with the transport workers union claiming the airline's decision to outsource
baggage handling staff is contributing to the issues qantas said there will be a 15
increase in ground handling staff during the july holiday compared with staffing levels
during the easter holidays according to accc chair rod sims the addition of wrecks into
the domestic airline market has driven down prices for consumers and driven further competition
between incumbent players the australian domestic airline industry has predominantly been a
do-poly since deregulation 30 years ago but we now have three airline groups competing
on some of australia's busiest routes zim said we've seen significant price reductions
on these routes due to increased competition he said each airline is working hard to win
over consumers and as they continue fighting for market share we can expect competitive
airfares improved connectivity and better products and services the reopening of the
western australia border helped quantus increase its market share quantas carried the most
domestic passengers in april at 37 percent up from 31 in january 2022 now that we've
come to the end of the video i want to thank you for sticking with me i'd love to know
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