SYDNEY – While Qantas’ international business is suffering, its domestic operations are thriving, chief executive Alan Joyce told CNBC this week.
“In our portfolio, Jetstar is making record money, our frequent flyer programme is making record money, our domestic business – both our regional and our Qantas domestic business – are also doing well,” Joyce said.
He expects international demand to return once the market for business travel recovers and will continue to offer first class seats after it completes a new seat configuration, the details of which are expected soon.
A report in the Australian Financial Review indicates
Qantas is planning to dump two-thirds of its first-class airline seats as part of a radical $400 million overhaul of its long-haul fleet.
The changes could increase economy seating areas on planes by up to 20 per cent.
Qantas would retain first class seats only on its London and Los Angeles flights, slashing the number of its first-class planes to 12 from 30, the Australian Financial Review said.
Joyce admitted to CNBC that the enhancements to first class might not be as considerable as in the past.
“We think that investment (in first class) is to continue but the business class product has become as good as the first class product was 10 years ago,” he said.
