Qantas could hold off on returning more cash to shareholders

Qantas Airways is likely to take a more conservative approach to the prospect of returning cash to shareholders alongside its annual results in August because of a weaker domestic market, analysts say. The airline said Monday it would pull back on planned capacity additions in the second half of the financial year as a result of soft demand attributed to the upcoming federal election and recent drop in consumer confidence. "It is not unusual to see businesses pull back travel levels prior to an election," Bell Potter analyst John O'Shea said. "Obviously the consumer confidence is a reflection of how they are feeling about things and a reflection of property and equity markets. The property market, there has been some uncertainty there and the equity market has been volatile this year." <br/>