QF confirms record Q1 sales and forward bookings.
Qantas has just issued a trading update, detailing total Group Revenue for the three months to 30 September of $4.41 billion, up 6.3% on the prior corresponding period.
The carrier said rising fuel costs had been “substantially offset” by capacity discipline and increasing net passenger revenue growth, with forward bookings up 8% compared to the same period last year.
Qantas also announced a new multi-million dollar investment in a new First Lounge at Singapore Changi Airport, along with expansion of its existing Business lounge, with the project to boost SIN lounge capacity by 60% when completed in late 2019, reflecting increased demand for premium travel and “the importance of the Singapore hub to the Group’s broader network”.
CEO Alan Joyce also confirmed the ongoing phase-out of the carrier’s Boeing 747 fleet, with the remaining nine jumbos to be retired by the end of 2020. Next month QF will take delivery of two additional 787-9s, bringing its total Dreamliner fleet to eight.
Joyce said market demand for travel remained fundamentally strong, while competitor capacity growth was moderating. He also noted that the strong revenue performance had also helped partially offset a rise in non-fuel costs, such as the impact of the weaker Australian dollar and “higher commissions paid to travel agents on the higher revenue”.
More information in today’s issue of Travel Daily.