Qantas Airways Limited
(ASX:QAN) has seen a decline in domestic air fares and passengers in July.
Australia's largest airline revealed passenger loads in the domestic sector dropped 4.3 percentage points excluding its regional carrier QantasLink.
Jetstar also fell 3.6 percentage points.
Returns from fares also flagged as the airline faced intense competition from rival Virgin Australia Holdings Limited
(ASX:VAH), who has committed to its strategy of increasing its domestic share.
Qantas booked a $244 million net loss for the 2012 financial year.