Qantas flying in low grounds

However, its domestic operations have offered some respite from the worst downturn of the jet age.

There was a 24% fall in international flights in the first 3 months of this financial year as compared with the same period in 2008-09 as shown in the key guide to an airline's profitability release by Qantas yesterday to illustrate its monthly figures which showed yields.

The total domestic yields from Jetstar and Qantas show that though both were 12% lower in the period, they were declining less noticeably than previously.

As Qantas tired to match capacity with demand for travel, it has been shedding flights since the start of the year. Routes to the US and Europe were the ones having the most competition as they were hit hardest by the slowdown.

Due to intense competition on key routes, there had been price discounting in all cabins, also, with a steep decline in the number of corporate travellers, Qantas said that its yields have been affected.

Goldman Sachs JBWere's analysts explained that some recovery in yields should be possible in the second half since there is an increase in demand for air travel and a general improvement in the economic conditions.