Qantas chief executive Vanessa Hudson said first-class bookings were at a record high as air travel emerged from the global cost-of-living crisis.
Demand for the airline’s first, business and premium economy seats is “stronger than ever”, Hudson told an investment conference hosted by Macquarie Group Ltd in Sydney on Wednesday. She said overall demand for Qantas’ domestic and international networks “remains very good”.
Heston said Qantas’ international capacity would also return to pre-COVID-19 levels this month. Premium economy is the most profitable travel class in the industry, she added.
At the meeting, Hudson’s tone was positive but also conciliatory. After taking the top job in September, she spent much of her time cleaning up the reputational mess left behind by her predecessor, Alan Joyce. This week, Hudson announced a $120 million settlement with Australia’s antitrust regulators after selling thousands of fake tickets.
“It’s not done yet,” Hudson said, referring to the work needed to repair the airline’s brand.
She said if Qantas wanted to win back disgruntled customers it had to ensure continued improvements in near-term flight reliability. She said to justify the high fares Qantas charges, flights must depart and arrive on time, while better reliability levels should also lead to higher revenue.
“When your network is running as planned, you get the most efficient service levels,” she said. When flights run on time, airlines avoid the extra costs of traveling crew and aircraft back and forth.
As the former chief financial officer of Qantas, Hudson has also injected additional funds into in-flight catering and call center staffing. Last month, she overhauled the frequent flyer business to make it easier for passengers to redeem airline miles.
Hudson said the restructuring of the loyalty unit would boost net profit within 12 months.
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