Turning away from the giddy heights of Qantas’ new global focus for just a few moments, and back home it seems Qantas’ is a bit sore.
Qantas has been publishing monthly yield and traffic statistics for all Group business since 2000. However, yesterday while everyone was distracted by Qantas-Emirates announcement speculation, the airline released its July traffic statistics, and for the first time published only qualitative, not quantitative yield data.
Why is this important? Yield is the amount of profit an airline makes per passenger after all costs have been attributed for.
Australian Domestic yields (comprising Qantas Domestic, QantasLink and Jetstar Domestic) were lower than the prior period (July ’11), and Qantas mainline Domestic passenger numbers were also down 2.6% with seat factor down 4.3% to 77.7%. A fare war looms large as all four domestic Australian carriers increase capacity in the market, and as competition between Qantas and a ‘game on’ Virgin Australia escalates both carriers profitability will suffer.
Qantas says “going forward, yield commentary in the monthly traffic statistics will be qualitative in line with international and domestic peers”, the airline is playing coy. Competition in the Australian domestic market has not been this intense since prior to the collapse of Ansett.