Air fares between Sydney and Melbourne, one of the world’s busiest routes, could fall as low as A$19 ($12) to persuade the public to fly after the coronavirus pandemic, according to Qantas Airways Ltd.
Qantas’s low-cost airline Jetstar could charge between A$19 and A$39 for those tickets once Australia lifts travel restrictions, Qantas Chief Executive Officer Alan Joyce said on a call with reporters on Tuesday.
“We’ve no doubt that there’s a need for some stimulation to start a lot of the market traveling again,” Joyce said. “We’ll still cover our cash costs on those flights.”
Sydney-Melbourne is the fifth-busiest route globally, with about 10 million seats a year, according to OAG Aviation Worldwide. Jeju-Seoul in South Korea ranks top with 17.4 million seats.
Qantas expects the domestic market to open before overseas routes. As it borrowed yet more funds to weather the crisis, the airline said Tuesday that demand to fly overseas could take years to return. It has extended international flight cancellations until the end of July and is only operating at about 5 percent of its usual passenger capacity domestically.
Coronavirus: Air travel recovery could take three years, say Emirates, EtihadMiddle East state carriers Emirates and Etihad Airways believe it could take three years for air travel demand to return to levels seen just before ... Coronavirus
Domestic air travel falls 70 pct with a slow recovery outlook amid coronavirus: IATADomestic air traffic is down 70 percent globally and the recovery over the coming six months is likely to be slow due to the damage coronavirus has ... Coronavirus
Global airlines to lose $314 billion in revenue from coronavirus: IATAGlobal airlines will lose $314 billion in revenue due to the coronavirus pandemic in 2020 according to a forecast from the industry’s representative ... Coronavirus