Originally Posted by
T-Vasis
But where does it end? And with what parts of the business? On aggregate, cASK erodes. Eventually you tread water. JQ needs deeper profit margins to 'weather' poor periods. It is cyclical, and variable to much outside of the airlines control. If they hover around the profitability line, a few negative periods may result in closure (just look around the globe), then all suffer. No offence - but I think this is an ideology of equal aircraft class and equal pay. Fine if profit margins are also equal. They're not.
Jetstar are looking at increasing its margin by 70% in the next 5 years.
The national carrier is aiming for the Qantas Domestic segment to hit an operating margin of 18 per cent by 2024. Budget subsidiary Jetstar Domestic is also targeting a 22 per cent margin by the same time, currently 14%.