Airline battle hurts Qantas revenues

THE battle over Australia's skies between Qantas Airways and Virgin Australia continues to eat into the Flying Kangaroo's revenues.

Although Qantas's monthly traffic figures published on Friday showed an increase in the number of domestic passengers, the extra seats that have gone into the market in recent times has resulted in a fall in revenue.

Passenger numbers on Qantas's domestic operations, which includes regional flying by Qantaslink, rose 5.9 per cent to 1.97 million in October, compared with the same month a year ago.

However its revenue seat factor - an industry measure for the number of passengers flown and how far they fly - fell 3.5 percentage points to 78.2 per cent.

The October 2011 traffic numbers included the impact of the grounding of the entire Qantas fleet as part of an industrial dispute with unions.


Topics:  industrial action qantas virgin australia

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