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AIR - Airbus SE News Story

€99.57 3.6  3.7%

Last Trade - 14/05/21

Sector
Industrials
Size
Large Cap
Market Cap £67.37bn
Enterprise Value £69.66bn
Revenue £42.84bn
Position in Universe 14th / 850

UPDATE 1-Qantas sees domestic business travel recovery 3 months behind leisure market

Wed 14th April, 2021 6:23am
* Airline to fly 80% of pre-pandemic domestic schedule in Q4
    * Business travel demand could drop 13-15% due to
videoconferences
    * Qantas could make up some of the fall by gaining market
share 

 (Adds comments from CEO on impact of videoconferencing)
    SYDNEY, April 14 (Reuters) - Australia's Qantas Airways Ltd
 QAN.AX  has seen domestic leisure travel rebound to
pre-pandemic levels, but demand in the corporate travel market
is lagging about three months behind, its chief executive said. 
    The airline plans to fly 80% of its pre-pandemic domestic
capacity in the quarter ending June 30, allowing it to generate
cash for the first time in several quarters, Alan Joyce told a
CAPA Centre for Aviation event on Wednesday.
    His comments were made in an interview recorded the previous
day.
    Much of the Australian domestic business travel market is
linked to areas such as transporting mining workers, government
travel and essential construction and manufacturing travel that
are proving resilient, Joyce said.
    "The market that could be subject to being replaced by video
conferencing, like professional services and people having
internal meetings, we think the net result is something like a
13-15% drop in the corporate market," he said. "But with the
potential for us making up that in market share."
    Rival Air New Zealand Ltd  AIR.NZ  last month said domestic
business travel was back to 90% of normal levels, though fares
were more heavily discounted than before the pandemic.
 urn:newsml:reuters.com:*:nL1N2LR2WY
    Domestic business travel demand in Australia and New
Zealand, which have nearly eliminated COVID-19 transmission, is
far better than in many other markets where infection levels are
not as controlled.
    The Global Business Travel Association last month released a
poll of companies from the United States, Europe and Latin
America that 69% had suspended most or all domestic business
travel, up 5 percentage points from February.  urn:newsml:reuters.com:*:nL1N2LR2WY
   In contrast to the brighter domestic outlook, Qantas has
grounded its international fleet until at least Oct. 31, with
the exception of travel to New Zealand as part of a two-way
bubble starting on April 19. 
    The Australian government on Sunday abandoned its target of
vaccinating the population by the end of October. Joyce said
that Qantas was still planning for international travel to
resume then, but that it would be flexible.

 (Reporting by Jamie Freed; Editing by Clarence Fernandez)
 ((Jamie.Freed@thomsonreuters.com;))
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