Australia’s biggest airline Qantas Airways Limited
(ASX:QAN) has fuelled speculation the nation’s capacity wars could be coming to an end as the airline works to bring back profitability.
The company had previously flagged plans to freeze capacity growth across Qantas Domestic, QantasLink and Jetstar in the first quarter of the coming financial year.
Speaking at the International Air Transport Association annual meeting in Qatar CEO Alan Joyce said the capacity situation in the domestic market has hit everybody's profitability.
Domestic airfares have dropped by more than 20 per cent over the past 10 years as competition heated up in Australia’s aviation industry.
Mr Joyce hopes reducing capacity will see fuller planes and higher average fares while lower fares could fire up demand.
Qantas Airways reported a net loss of $235 million in the first half of the 2014 financial year.
