Qantas is gaining share from its main rival, Virgin Australia, new analysis shows, as low-cost subsidiary Jetstar takes delivery of bigger aircraft and adds cheaper seats to a softening domestic aviation market.
Virgin was unsuccessful in talks aimed at buying Rex but quickly swooped on three of its aircraft leases and also agreed to fly Rex passengers free of charge, in an attempt that one analyst, who did not wish to be named, said would flatter market share.Jetstar adding capacity at the bottom end of the market appeared to be challenging Virgin’s market share and bringing down fares.
Jetstar added 15 new Airbus A321 aircraft during financial year 2024, each with about 50 more seats than the planes they replaced. Jetstar’s new aircraft fly on both domestic and international routes.Qantas has also added three new Airbus A220 aircraft to replace its Boeing 717s, each with about 20 more seats, flying on Melbourne-Brisbane, Melbourne-Canberra and Melbourne-Hobart routes.