While Jetstar brings in less revenue than Qantas, its lower cost base can potentially see it post a disproportionately higher profit, which is why some services (such as those to and from the Gold Coast) have shifted from Qantas mainline to Jetstar. Market share is not reflective of profit or margin.
Well the last annual report tells a different story:
My post from last year:
If QF international lost $200m, the EBIT for QF Domestic and Qlink would be $428m.
Total QF Domestic (including Qlink) passengers is 21,930,000. So each passenger earns QF $19.50 profit.
Total Jetstar passengers is 15,315,000, with an EBIT of $169m So each passenger earns Jetstar $11.03 profit.
When you look at the ASK's, QF Domestic makes a profit of $0.012 per ASK. Jetstar makes $0.0049 per ASK.
So QF Domestic is 2.5 times more profitable than Jetstar per ASK and makes 77% more profit per passenger.
Jetstar Asia made $A14.25m. That gives it a profit of $5.28 per passenger or $0.0024 per ASK. QF domestic is thus about 3.7 times more profitable per passenger or 5 times more profitable per ASK than J* Asia.
Jetstar Pacific is obviously such a complete basket case, they provide 2 lines on it with not a single financial detail.
If you take Jetstar Asia out of the Jetstar numbers, then the Jetstar profit per pax increases slightly to $12.27 and the ASK profit rises to $0.0054. Still a long way off QF domestic!!!
All these numbers are based on the financials provided by QF in the annual results including the $200m international losses, I have made NO assumptions, just broken down the numbers. Even if we did say QF had exaggerated the international losses and say said that QF international lost only $50m and so QF domestic made $278m, the QF domestic business still far outperforms the Jetstar business in profit per ASK and profit per passenger.