Qantas forecasts international airfares to stay high until 2030

international airfares

Qantas has poured cold water on hopes of a fall in international airfares, saying demand will outstrip supply until 2030.

The forecast came from Qantas’ outgoing head of international and domestic, Andrew David, who said he had “never seen such favourable international conditions”.

“We can say that demand will outstrip supply for the immediate future and through to the end of the decade,” he told an investor meeting.

David added that “continuing pent-up demand exceeding capacity” would likely last until 2030.

The supply side has been hampered by spare parts shortages, limited maintenance, production delays by aircraft manufacturers and labour shortages.

With new direct Sydney to New York and Sydney to London flights by 2025, Qantas aims to grow its earnings before interest and tax margins for the international business to 10 to 12 per cent.

Qantas recently forecast it would post a $2.5 billion profit for the 2023 financial year.