Qantas boss Alan 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. Qantas' domestic flying has been reduced to 5 per cent of its pre-pandemic levels.
Mr Joyce predicted that there would be some demand from people who want to visit family when restrictions lift and Qantas would also look to stimulate demand with cheap airfares through airline’s budget arm Jetstar.
Speaking during the company’s third quarter trading update, Joyce said Qantas is in a good position to ride out the crisis and that “life on the other side” could include massively discounted flight prices.
“Airfares could be half of what they are today,” he said.
“For example on Melbourne-Sydney you could see Jetstar fares of $39, you could see $19 airfares and we will still cover our cash costs.”
Airfares for passengers out of Perth are also set to plummet. One way flights from Perth to Sydney or Melbourne starting at $89. It would also cut the cost of a one-way flight to Adelaide to $79.
Qantas plane on runway Source: Getty Image
The airline on Tuesday also said it would put its"Project Sunrise" plan to fly non-stop to New York and London on hold in light of the pandemic which has brought the international travel demand to a halt.
The company also announced that staff across Qantas and Jetstar will remain stood down until the end of June, while international flights will not resume before August at the very earliest.
