Two-thirds of Jetstar flights sell for under $100

Posted: 21 February 2019 9:25 am
News

Qantas' low-cost sibling is all about the bargains.

Qantas announced its half-yearly results this morning. The airline is doing well despite rising fuel prices, with a profit of $780 million. It's also seeing big growth in Qantas Frequent Flyer, driven in part by its move into financial services (seen most recently with its launch of the Titanium credit card).

Some developments are surprising. CEO Alan Joyce said that the introduction of the Perth–London route had made London services profitable for the airline for the first time since 2010.

Yet the figure that jumped out at me from those numbers was about its low-cost brand, Jetstar. As Joyce noted: "Almost two thirds of Jetstar seats sold domestically and internationally for less than $100."

That's good news for bargain-hunting travellers, because it means the Jetstar sales will continue. As I've pointed out recently, Tigerair, Jetstar's key low-cost rival in Australia, is in the process of raising prices as it tries to turn a profit. Jetstar doesn't need to pursue quite the same strategy.

Of course, sub-$100 fares are very much a case of "you get what you pay for". If you want a business class seat and a generous luggage allowance, then a full-fare carrier like Qantas is going to be a better bet. And you'll be lucky to earn any Qantas Points on Jetstar flights if you're paying that little.

However, for short domestic hops, those discounted fares remain tempting. I'm booked on one next week, in fact.

Angus Kidman's Findings column looks at new developments and research that help you save money, make wise decisions and enjoy your life more. It appears regularly on Finder.

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