May is usually soft.
The market is relatively saturated with capacity. Due to GFC, LCC's enjoyed greater then normal patronage as price drove consumer choice.
As the economy is rebounding, full-service traffic is returning. Premium traffic is also returning quickly and levels are already pre GFC for Qantas. This will in-turn soften LCC demand and with the market over-capacity, naturally SF will weaken...
Tiger and Virgin will also be feeling the pressure. Considering Virgin reduced their profit forecast twice, it's obvious the financial impact we're already seeing...
Good to see Qantas however maintaining their forecast...