Qantas flags $19 Sydney to Melbourne Jetstar flights in COVID-19 recovery plan

Qantas boss Alan Joyce has said the airline’s budget arm Jetstar could cut airfares on the Sydney to Melbourne route as low as $19 to stimulate passenger demand once COVID-19 travel restrictions ease. Qantas' domestic flying has been reduced to 5% of its pre-pandemic levels, and Joyce said while there was "light at the end of the tunnel" in the form of domestic travel restrictions easing and a possible trans-Tasman "bubble", the recovery would be gradual. There would be some pent-up demand from people who want to visit family when restrictions lift, Joyce said, and Qantas would also look to stimulate demand with cheap airfares. “On Melbourne-Sydney you could see Jetstar have $39 airfares, you could see $19 airfares and we'll still cover our cash costs on those flights," he said following an investor update. The signal of steeply discounted fares comes as Qantas' domestic competitor Virgin Australia is in voluntary administration looking for new owners. Mr Joyce said it wasn't yet clear what kind of airline the new Virgin will be, although some are suggesting it will return to its budget roots. He said whatever the outcome, it will present "challenges and opportunities" Qantas will have to respond to.<br/>