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Highlights
- Qantas announced rebalancing of capacity and fares in domestic travel.
- Russia and Ukraine war has shot up the prices of fuel.
- Qantas’ international operations remains unaffected.
Australian air transportation services provider, Qantas Airways Limited (ASX:QAN) informed the market through a press release on Thursday that it is going to rebalance fares and capacity. This update came from the company’s camp, as it aims to offset months of towering fuel costs.
The shares of Qantas ended 1.121% higher at AU$5.410 per share today. The shares have gained 15.35% in a year, and the year-to-date surge is 5.05%. Noteworthy here is that Qantas outperformed its benchmark index, ASX200 Industrials (XNJ) which ended 0.232% down.
Qantas shared an industrial update
Over the past month, the prices of fuel have inflated, and to offset the same, Qantas said that it requires to rebalance fares and capacity. In line with this, the company announced a reduction in the domestic flying levels from 107% of pre-Covid-19 levels to 103% for July and August.
The Australian flag carrier has not provided any information about the expected change in prices but stated that the adjustments are expected not to affect the customers materially. The company added that those customers who will be materially impacted would be contacted directly, and different options will be provided.
Qantas update on international operations
Image source: © Iwikoz6 | Megapixl.com
Qantas reportedly said that the international operations are witnessing strong demand as the Covid-19 related restrictions are eased, and northern summer peaks are approaching.
Reportedly, the company is not introducing any change in the international capacity. It is just under 50% of pre-covid levels by the end of 4QFY22 (fourth quarter of 2022). The capacity is expected to rise to 70% by the end of 1QFY23.
Through a press release, the company informed that it would start to operate on the following routes:
- From 22 June, seasonal Perth-Rome services will commence.
- From 14 September, flights from Sydney to Bengaluru will begin.
- Sydney-Seoul services will begin on 10 December.
- From 2 December, flights from Melbourne to Dallas Fort Worth are expected to begin.
Qantas invests in new customer technology
To make the airport experience easier and faster for domestic flight customers, Qantas has begun with the deployment of next-gen airport kiosks. The limited trial of the new technology has begun at a single terminal of the Sydney airport. If things work out fine, the national carrier is expected to fully install the system in Sydney by June. By September, 140 kiosks are expected to be installed across all major airports.
Qantas said in a statement that the new technology is going to be around four times faster than the existing technology.
Do read: Aussie petrol prices set for record highs: Factors fuelling rise
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