Top News Qantas, Jetstar slash Q3 capacity amid Omicron surge By TTG Asia / Posted on 18 January, 2022 15:20 Qantas and its low-cost unit Jetstar will slash about a third of their planned domestic and international capacity through end-March in response to the Omicron variant which has had a dampening effect on travel demand. The carriers will only operate 70 per cent of their pre-Covid domestic capacity in the third quarter, down from the 102 per cent that had been planned. Qantas, Jetstar adjust flying levels to better match travel demand in light of the sudden Covid surge International capacity for the same period will also be reduced from 30 per cent to around 20 per cent of pre-Covid levels due to increased travel restrictions in countries like Japan, Thailand and Indonesia. Qantas Group CEO Alan Joyce said: “We have the flexibility to add capacity back if demand improves earlier than expected, but 70 per cent still represents a lot of domestic flying and it’s a quantum improvement on the levels we faced only a few months ago. “Our focus on cash positive flying remains, notwithstanding some of the costs that we’ll have to absorb from this sudden drop in demand.” He added that early bookings for the Easter holidays in April are looking “promising” for both domestic and international flights. The airline said that an assessment on the financial impact of these changes will be given at the group’s half-year results in late February. It added that no material adjustments have been made to capacity expectations for the fourth quarter.