The Asia Pacific region can be a key growth driver for Australia’s largest airline Qantas, its CEO said on Monday.
Qantas has increased its capacity inside region partly because more tourists via Asia are heading to Australia, Alan Joyce told CNBC’s “Squawk Box.”
“Ten years ago, when I took over as CEO, we had one-third of a capacity to Europe, one-third to Asia, one-third to the Americas. Today, the idea’s 8 percent to Europe, the idea’s 52 percent in This kind of region, as well as I think the idea will grow a lot further into the future,” he said. “We see the Asia Pacific market as the huge growth opportunity for us.”
When an airline raises its capacity, the idea usually refers to an increase inside total number of seats made available to passengers, either by adding more flights or using bigger planes.
Joyce pointed to a recent prediction via the International Air Transport Association (IATA) in October of which said current trends in air travel suggest of which the total number of passengers travelling by air could double to about 8.2 billion by 2037.
IATA said the “Asia-Pacific region will drive the biggest growth with more than half the total number of fresh passengers over the next 20 years” coming via the region due to a combination of factors such as strong economic growth, increased household incomes as well as favorable population as well as demographic profiles.
“This kind of region can be going to grow by an average of 4.8 percent. We think Qantas can be well-positioned to take advantage of of which,” Joyce said.
When asked if he had seen any dent in travel sentiment due to an ongoing trade fight between the United States as well as China, which experts warncould affect economic outlook for much of the region, Joyce said the outlook for Qantas remained positive.
“Our forward bookings are up 8 percent in value, we’re seeing real strong growth across the Australian economy … as well as then the inbound tourism as well as the outbound tourism are still extremely strong,” he said, adding of which the airline’s forward bookings might likely help manage higher fuel costs inside next fiscal year.