Qantas To Cut Capacity Following Weaker Demand

Australian airline Qantas has confirmed it will cut back on scheduled capacity increases after warning of weakened domestic demand.

Australian airline Qantas has confirmed it will cut back on scheduled capacity increases after warning of weakened domestic demand.

In a statement released on Monday (April 18), the Sydney-based carrier said “some softness in demand, related to the upcoming federal election and recent drop in consumer confidence in Australia” had led to it reevaluating some of its growth plans in the final quarter of its financial year.

It will now revise domestic capacity down from two per cent to between 0.5 per cent and one per cent.

The setback follows a recent strong performance from Qantas, with the carrier posting a record half-year profit of A$921m ($665m) in February after benefitting from the fall in fuel prices.

TAGS: Asia Pacific
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