Qantas CEO predicts cutbacks in discounted airfares

QANTAS CEO Alan Joyce predicts Australians will see cutbacks in discounted airfares as the local market hits capacity.

The Age reports, Mr Joyce expects average airfares will begin to rise now that the long-running domestic capacity battle against Virgin Australia seems to have ended.

”It is very clear that the capacity situation in the domestic market has hit everybody’s profitability,” he said.


Qantas will reportedly freeze domestic capacity at the beginning of the 2015 when consumer confidence is low and demand in the resources sector slows. The Age reports, Virgin cut capacity in February, March and April.

Mr Joyce also said that while discount fares would still be offered by Qantas, fewer would be available once the airline was filling seats comfortably.