The Qantas Group is cutting its Australian domestic flights by about 5% as it redeploys capacity onto its European flights.
In a market update, QF says it continues to see strong Europe demand from customers using its flights instead of going through the Middle East on other airlines.
“In response, the group has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome,” the airline says.
While Aussie domestic capacity will be reduced in the last quarter of this financial year, growth of its international unit RASK (revenue available seat kilometres) is expected to be 4% to 6%, double its previous guidance.
This includes the 50% of revenue for the quarter that was sold prior to the war starting in the Middle East on 28 Feb, it adds.
. . . Fuel Costs
The Qantas Group has hedged about 90% of its exposure in crude oil for the second half of the year, but it is exposed to movements in jet refining margins.
These increased from USD20 per barrel in Feb to a peak of around USD120. QF says it is working closely with the Australian government and fuel suppliers who continue to provide confidence in fuel supply for the remainder of Apr and ‘well into’ May.
