Anyone who thinks Qantas can charge a $500 premium, particularly in Y, has rocks in their head.
Reality is air travel is a commodity - the differences between carriers are tiny.
In my mind the amount a full service carrier can charge extra is very small.
IFE - Most LCCs charge $15 for a portable unit
Food - Again worth $20 at most
Alcohol - For the vast majority $10-20, more for a few
Leg room/ Elbow room - Maybe $50 (same as exit row fees). Admittedly most full service carriers are squeezing here as well (eg Emirates 777)
Lounge access (if elite and have access) - Up to $50
Schedule - Some premium on domestic, less for international
Crew - On some QF flights an advantage, on others a disadvantage
So there is little difference in Revenue - and all of the above revenue items have associated Costs - it comes down to how well an airline manages other costs.
This is where Qantas will continue to struggle, particularly against the Asian airlines... And in costs I particularly include Pilot and FA costs, maintenance costs, landing and parking costs at home airport, depreciation on aircraft
Jetstar has a slightly better chance at competing but even it will struggle.
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Bootstrap,
Australian's don't love flying Jetstar.
They do however love the cheapest price so they can spend more on their Bintang beer and singlets.