Summary
- Jetstar’s 20th anniversary sale caused its website to crash, with cheap fares selling out quickly.
- Due to seasonality, Jetstar has cut capacity during the upcoming months on domestic flights in Australia.
- However, Bonza, an Australian low-cost carrier, ceased operations, which could prompt Jetstar to add more seats to its network.
A ticket sale for Jetstar flights had resulted in the low-cost carrier’s website crashing, a repeat of a scenario in 2022. The airline, celebrating its 20th birthday, had offered tickets for as low as AUD29 ($19) on certain domestic routes.
Celebrating 20 years of Jetstar
In a post on Instagram on April 24, 2024, Jetstar began teasing that it would be turning 20 soon, adding a #20thBday hashtag to its posts, followed by three subsequent publications on the social media network related to its anniversary. One of the posts introduced the ‘We Fly Jetstar’ ad campaign, with the caption adding that customers should “stay tuned for a big month of Birthday celebrations.”
On May 3, the Qantas subsidiary launched the sale, with fares on certain domestic routes starting from as low as AUD29 ($19), which have sold out already. The airline’s sale also includes other routes, including flights to Seoul Incheon International Airport (ICN), Tokyo Narita International Airport (NRT), and Denpasar International Airport (DPS), serving Bali, Indonesia, as well as additional domestic and international routes.
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Cutting domestic capacity
However, data from the aviation analytics company Cirium showed that Jetstar has significantly cut its domestic capacity between April and May. The airline had scheduled 1,964 weekly flights during the former month, while during the latter, it has only scheduled 1,504 weekly flights, which has resulted in its domestic capacity, measured in available seat kilometers (ASK), dropping from 483.7 million to 369.2 million.
Its overall capacity, including international itineraries, is scheduled to go down from 1.03 billion ASKs to 869.7 million ASKs from April to May. The Jetstar group’s capacity, which includes Jetstar Asia and Jetstar Japan, should go down from 1.2 billion ASKs to 1 billion ASKs.
Photo: Peterfz30 | Shutterstock
According to Qantas Group H1 FY2024 report, which covers the period between July 1, 2023, and December 31, 2023, Jetstar’s domestic and international capacity should increase by 16% and 29% Year-on-Year (YoY), respectively, in H1 FY2024. The latter figure excludes Jetstar Asia’s capacity guidance.
Nevertheless, the summer months are typically a downturn period for airlines based in the Southern Hemisphere, with Jetstar cutting its overall capacity in May 2023 as well. Still, Qantas Group noted that it was seeing strong travel demand across its whole portfolio in H2 FY2024.
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Changing situation
However, the situation has significantly changed since the airline last updated its capacity data. Bonza, the startup low-cost carrier in Australia, temporarily suspended operations as it entered voluntary administration on April 30. The airline’s website currently says that flights have ceased up to and including May 7.
Yet Bonza’s future is in limbo since aircraft lessors have already repossessed the four Boeing 737 MAX 8 aircraft it owned under its name, namely jets registered as VH-UIK, VH-UJK, VH-UJT, and VH-UKH. None of the four have flown since April 30. Meanwhile, the Boeing 737 MAX 8 that Bonza had wet leased from Flair Airlines, registered as C-FLHI, has not operated a flight since April 29.
Photo: Bonza
Both Bonza and Flair Airlines are either fully or partly owned by 777 Partners, a US-based investment firm. The Australian airline has struggled with funding since February, when ACap, the presumed securities holder of Bonza’s Boeing 737 MAX aircraft, was no longer willing to fund 777 Partners ventures, according to Australian Financial Review, which cited three industry sources.
Reacting to Bonza’s failure, Jetstar stated on the same day that customers flying on a route that Bonza also operates could fly without any additional fees where seats are available. If there is a close alternative route, Bonza’s passengers could also fly for free.
Photo: Bonza
Cirium data showed that Bonza had a low market share in May in terms of weekly domestic flights in Australia. Out of the 11,702 total weekly departures, the now-idle low-cost carrier was scheduled to operate 172 weekly flights or 1.4% of the total market. Out of the 1.6 billion domestic ASKs, Bonza had 41 million ASKs, or 2.4%. However, Jetstar’s latest capacity data could be updated as soon as next week, which would indicate whether the Qantas Group airline has reacted to the failure of Bonza.
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