Qantas chief executive Vanessa Hudson has declared that Australians are still prioritising travel despite significant price hikes, as the airline reports robust demand for both domestic and international flights.
Strong Demand Continues
Speaking at a business event in Sydney, Hudson noted that travel remains a top priority for Australians, even as cost-of-living pressures mount. The airline has seen sustained demand across all sectors, with forward bookings indicating that the trend will continue into the next financial year.
"Australians love to travel, and they are making it a priority in their spending," Hudson said. "We are seeing very strong demand for both leisure and business travel, and that is reflected in our forward bookings."
Price Hikes Not Deterring Travellers
The comments come as Qantas faces criticism over rising airfares, with some routes seeing increases of more than 30% compared to pre-pandemic levels. However, Hudson argued that the airline is simply responding to market forces, including higher fuel costs and increased demand.
"We are seeing that customers are willing to pay more for travel, and that is a reflection of the value they place on it," she said. "We are not seeing any significant resistance to higher prices."
Capacity and Competition
Hudson also addressed concerns about capacity constraints, noting that Qantas is adding more flights to meet demand. The airline has increased its domestic capacity to 107% of pre-COVID levels, while international capacity is at 85% and expected to rise.
"We are investing heavily in our network to ensure we can meet the demand," she said. "We are also seeing increased competition, which is healthy for the market."
Record Profits Expected
The strong demand is expected to translate into record profits for Qantas, with analysts forecasting a full-year net profit of up to $2.5 billion. This would be a significant turnaround from the pandemic years, when the airline posted massive losses.
Hudson declined to comment on the profit outlook but said the airline was focused on delivering value for shareholders while maintaining high standards of customer service.
Customer Service Improvements
The Qantas CEO also outlined plans to improve customer service, following a series of complaints about delays, cancellations, and lost luggage. The airline has invested in new technology and staff training to address these issues.
"We know we have work to do in terms of customer service, and we are committed to improving," Hudson said. "We have already seen some positive results, and we will continue to focus on this area."
Outlook
Looking ahead, Hudson expressed confidence that the travel boom would continue, driven by strong demand from both domestic and international travellers. She said Qantas was well-positioned to capitalise on this trend, with a strong balance sheet and a growing network.
"We are optimistic about the future of travel in Australia," she said. "We believe that Australians will continue to prioritise travel, and we are ready to meet that demand."
