Qantas cuts domestic capacity as fuel prices soar

Qantas is set to make a further cut to its domestic capacity to help mitigate the effects of higher fuel prices and the industry’s talent shortage. However, the decrease will still mean the airline will operate at 106% of pre-COVID levels for Q2 FY23 and 110% for Q3. The announcement came alongside news many employees would be eligible for a $5,000 bonus following a two-year wage freeze. “For July and August, an additional 5 percentage points of capacity will be removed on top of the 10% announced in May,” said Qantas in a statement to the ASX. “This total 15% cut will also be applied to September. A cut of 10 percentage points will be applied to schedules from October through to the end of March 2023. These reductions, combined with robust international and domestic travel demand, are expected to help the Group substantially recover the elevated cost of fuel indicated by forward oil prices. They will also assist with the near-term resourcing pressures currently being felt across aviation and the broader economy.”<br/>