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Qantas slashes flights in Australia as rising oil price...

Business Maverick

Business Maverick

Qantas slashes flights in Australia as rising oil prices bite

Aircraft operated by Qantas Airways Ltd. on the tarmac at Sydney Airport in Sydney, Australia, on Wednesday, June 23, 2021. While losses at airlines globally from Covid-19 are set to surpass $174 billion by the end of 2021 -- wiping out half a decade of profits -- Qantas has become one of the most financially secure carriers anywhere in the world.
By Bloomberg
24 Jun 2022 0

Flights to Australia are about to become more expensive and less frequent as the steep rise in the fuel price has forced the airline to trim its flight schedule. 

Qantas Airways slashed domestic flight schedules until March next year to help offset the rising cost of fuel, a step that’s likely to drive fares even higher.

Flying in Australia from July to September will be cut by 15%, more than the airline previously forecast, Qantas said on Friday. Some 10% of flights will be scrubbed from October to the end of March. 

The depth and duration of the reductions highlight the burden on airlines as Russia’s invasion of Ukraine drives up the price of oil – and jet fuel. With travel demand soaring, the capacity cuts should help Qantas financially because remaining flights will be more full and the airline is under little pressure to reduce ticket prices.

“These reductions, combined with robust international and domestic travel demand, are expected to help the group substantially recover the elevated cost of fuel indicated by forward oil prices,” Qantas said in its statement. 

The airline also took steps to address the travel chaos that has hit major airports in Australia as the depleted industry struggles to deal with a passenger rebound:

  • 15% increase in ground-handling staff compared with Easter
  • 20% more staff on standby to step in for sick employees
  • New check-in and baggage kiosks, starting in Sydney
  • A$5,000 bonus for as many as 19,000 staff if they agree to a new pay deal and stay at Qantas

 

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