Everyone’s hurting

Major airlines in hostile domestic territory as capacity runs ahead of demand

The half-yearly results from the two major airlines were a clear demonstration of their differing strategies – and the competitive tension between them that have caused both to suffer a domestic downturn.

Qantas posted a statutory profit of $111 million for the six months ending in December, up from $42 million in the first half of the previous financial year. Pre-tax profits rose 10 per cent to $223 million, but included a $125 million payment from Boeing, which accounted for more than half the total profit.

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