Qantas books in a boost

QANTAS yesterday said a jump in forward bookings and higher airfares had helped offset rising fuel costs for a 6.3 per cent rise in first-quarter revenue to $4.41 billion.

The airline said the value of forward bookings was up 8 per cent on flat capacity compared with same time last year, and 6.2 per cent up on the June quarter.

Travel demand was strong across the business and leisure markets, it said.

Passengers paid 5.4 per cent more on average for seats over the quarter, with the strong revenue performance also offsetting higher commissions paid to travel agents and the impact of a weaker Australian dollar.

Revenue across Qantas and sister airline Jetstar’s domestic operations was up 6.8 per cent, while international group revenue rose 4 per cent, which Qantas said was supported by structural changes to the network, including direct flights from Perth to London.

Chief executive Alan Joyce said he was confident forward bookings would help Qantas manage higher fuel costs, which are expected to hit $4.09 billion in FY19, compared with $3.23 billion for FY18.

“Our record passenger revenue performance for the first quarter meant that we were able to substantially recover higher fuel prices,” he said.

“Market demand for travel remains fundamentally strong and we’re seeing some windback of competitor capacity growth.”

Qantas also announced a multi-million-dollar investment in a new first-class lounge, as well as expanding its existing business lounge, at Singapore’s Changi Airport, increasing its lounge capacity at the airport by 60 per cent.