Qantas and Virgin Australia See Revenue Boost After Cutting Flights
Photo Credit: Pictured is a rendering of a new first class lounge that Qantas is planning for Singapore Changi Airport. Qantas
Skift Take
Experts were tipping a slow-down in travel in Australia due to the falling dollar and rising fuel costs, but the country’s two main airlines are seeing revenue growth, mostly because they have reduced capacity and halted the price war.
Rising fuel costs and a falling Australian dollar were expected to hit Australia’s largest airline’s bottom line, but Qantas on Thursday reported a rise in revenues thanks to higher airfares and stronger forward bookings.
The Qantas Group achieved record levels of revenue for the first quarter of its fiscal year, up 6.3 percent compared with the same period last year.
Group CEO Alan Joyce said a combination of positive market conditions and the group’s strategic advantages was helping it perform well.
“Our record passenger revenue performance for the first quarter meant that we were able to substantially recover higher fuel prices,” said Joyce.
Joyce said market demand for travel r
