Qantas (ASX:QAN) confident in domestic air travel growth

Qantas (ASX:QAN) has upgraded its estimate of domestic capacity to beyond 90 per cent of its pre-pandemic aviation activity for the June Quarter of FY21.

Australia’s flag carrier is betting on the lifting of travel restrictions and reduced border closures across the country’s six states and two territories. Qantas plans to deploy 90 per cent of the group’s fleet back into action in the air. The airline has ramped up services between Australian cities by 34 new routes since the beginning of FY21, with Qantas flights constituting 70 per cent of total civil aviation services within Australia.

CEO Alan Joyce shared, “This is the longest run of relative stability we’ve had with domestic borders for over a year and it’s reflected in the strong travel demand we saw over Easter and the forward bookings that are flowing in each week from all parts of the market.”

Projections are suggesting the strong recovery in domestic travel to continue into the coming year , prompting Qantas planners to lift FY22’s domestic capacity estimate to 107 per cent of pre-COVID levels. The company has attributed the company’s recent strong performances to the “extremely strong leisure demand – helped by the Federal Government’s half-price fare offer – and the return of the majority of corporate and small to medium business travel”.

The company’s international department also received a boost from the introduction of the Australia-New Zealand travel bubble and plan to accelerate international services from October.
Shares in Qantas (ASX:QAN) last traded at $5.21

 
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Source: Finance News Network