Qantas has been able to charge large fees because of a lack of capacity... and a lack of competition.
👉 Background: Qantas likes to call itself the spirit of Australia. In fact, from 1947 - 1993, it was actually government-owned. And even now, Qantas must be at least 51% Australian-owned.
👉 What happened: The airline industry took a major hit during COVID - Qantas had a loss of $7 billion over the past 3 years. But Qantas is now expected to announce a half year profit of at least $1.3 billion later this week.
👉 What else: The main reason? They’ve been able to charge large fees because of a lack of capacity… and a lack of competition. In fact, flight prices are on average 20% higher than in 2022. Despite these fees, the big Q is investing $100 million to build lounge upgrades.
💡 In the aviation industry, as competition rises, it is more important than ever for companies to listen to their customers. Virgin is flyin’, Rex is bubbling along nicely, and finally even Bonza is here.
💡Qantas travellers say that the number one reason they travel with them is the broad network. The number two reason is the on-board experience.
And number three, surprisingly, is the lounges!
💡In fact, 30 per cent of Qantas passengers use the airline's lounges each year. So Qantas is more focused on providing a great experience for those willing to pay up..rather than trying to drop their price.
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