Qantas To Cut H2 Domestic Capacity Growth

Qantas Airways is cutting planned domestic capacity growth in the second half of the year due to slower than expected demand.

In a statement to the Australian Securities Exchange, the airline said it was cutting domestic capacity growth to between 0.5 and 1 percent for the second half, from 2 percent previously, due to "changed demand conditions".

"Some softness in demand, related to the upcoming federal election and recent drop in consumer confidence in Australia, began to emerge over the peak Easter and school holiday period in late March," the statement said, referring to a likely July 2 general election date.

It added that the weaker conditions were continuing.

Qantas also said it has cut capacity between Australia and the United States by removing three Sydney-Los Angeles flights and re-directing capacity to Singapore and Hong Kong in response to demand in those markets.

Those changes would result in total seat capacity growth between Australia and the United States of 6 percent, compared to 9 percent growth earlier, Qantas added.