Online travel agent Webjet expects airfares to remain low because Australian consumers are being more cautious about their spending decisions.
Managing director David Clarke said the Australian travel market remained ”acutely price sensitive” and bargain fares for domestic and international flights had dropped over the past six months.
”We are cautious about how the discretionary retail market is,” he said. ”We think we are seeing a shift in where the demand is coming from – away from the mortgage belt … to the under 30s and over 50s,” he said.
Clarke said he saw no end in sight to historically low airfares because of budget-sensitive consumers and intense competition among airlines.
Webjet in June revealed it has entered into a 50-50 joint venture agreement with Westminster Travel in Asia that will lead to the launch of Webjet online operations in Singapore and Hong Kong before the end of the year.
This will include flights within Asia and from Asia to rest of world and ancillary value added products such as insurance, car hire and Stay and Pay.
Webjet posted a 37 percent rise in net profit to $10.5 million for the year
It also reported a 30 percent rise to $504 million in the value of ticket sales for the year.
