Qantas has experienced a yield drop by as much as 3%, according to chief executive Alan Joyce, who has said the new lows means the airline will now have to face some tough business hurdles.
The post-election rise in business confidence, which was expected to heighten demand for the airline’s services, has failed to produce any benefits for the airline leaving it to bate a volatile economy, uncertain exchange rates and high fuel prices, reports The Australian.
Qantas chairman Leigh Clifford has said the carrier must be focused on reducing costs and keeping its competitive advantages to make it through the tough times ahead.
Despite the bleak forecast Joyce has said the airline’s strategy to strengthen domestic business, improve Qantas International, develop Jetstar in Asia and grow Qantas Loyalty was delivering positive results.
The Australian has reported Qantas shares fell 5c to close at $1.43 yesterday following Joyce’s announcement at the airline’s annual meeting in Brisbane.
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