Despite this scale and flying some 48% of the ASK of the parent they cannot generate more than 30% of the revenue
This must be some kind of Mantra to you, as I have lost count the amount of the times you have stated this fact over the past year or longer in this thread. Perhaps over 5 times now ?
I ask again, what are you to trying to achieve by saying this ? Are you trying to point out that Jetstar (the Jetstar in the FY18 report) is a complete and utter dismal failure ? You use revenue to exaggerate what a failure Jetstar is, and you deliberately overlook the important fact which is actual profit.
As you say
Let not actual facts get in the way of a good story
Now let's look at some facts, from the Qantas FY18 report.
Even though Jetstar flew some 48% of the ASK of the parent company, it actually made 40% of the profit using only 30% of the revenue. Not bad hey ? It is actually not as bad as you make it out to be. Let's look at profit and not revenue when comparing how successful something it as even you mention the importance of profitability to an airline.
Now most people here are arguing that Qantas need a new fleet, and discussion usually revolves around a widebody fleet for Qantas International.
So now let's look at some more facts and compare Qantas International vs Jetstar (the Jetstar which flew 48% ASK for 30% revenue, Jetstar Australia, JQ, which someone always denigrates, the Jetstar in the FY18 report).
Qantas INTL flew 69,280 ASKs vs Jetstar 48,763 ASKs.
Qantas INTL made $6,892 M revenue compared to Jetstar $3,767 M.
Qantas INTL made $399 M EBIT vs Jetstar $461 M EBIT.
What good is revenue if there is no profit ? Yet someone keeps denigrating Jetstar based on revenue alone.
Qantas INTL flew 42% more ASKs for 14% less profit. It is very obvious which is more profitable.
Qantas INTL have an operating margin of 5.8% vs Jetstar 12.2%.
Qantas (INTL + DOM) made 3.4 times more revenue but only 2.5 times more profit. It is obvious which generates better profit compared to revenue.
From these facts above, it is very obvious that Jetstar (Jetstar Australia, JQ) is a much better return on investment compared to Qantas International.
Continue to denigrate Jetstar (Jetstar Australia, JQ) as much as you like, but that facts speak for themselves.
As someone else also pointed out, you do contradict yourself.
You wrote
Would it not be a better use of capital to re-equip and lower fuel costs improve operating profit margin and profitability
BTW, I notice that you happily use the term profit and not revenue here.
Isn't investing in Jetstar (Jetstar Australia, JQ) compared to QF INTL something that improves profitability for the airline group ?
I rest my case.
Yes sure Qantas might need a new fleet, but don't denigrate Jetstar (JQ) as it's not such a failure as some like to make it out to be.