Qantas to waive international flight change fees

Qantas unveils a big fare sale, an upgrade in economy service and an extension to its no change fee policy until 2022.

Gold Coast Airport is yet to return to pre-COVID levels due to low consumer confidence in air travel. Picture: Scott Powick

Qantas is flexing its competitive muscle with a massive airfare sale and an upgrade in on-board offerings, in an effort to stimulate travel demand and increase revenue.

The flying kangaroo will also extend its “no change fee” policy until 2022 to try to rebuild consumer confidence in air travel amid ongoing state border restrictions.

The airline’s sale of more than one million seats from $99 one-way and from $399 for business, came after a series of fare sales by rival Virgin Australia.

Chief customer officer Stephanie Tully said Qantas was also making improvements to in-flight food and beverage for customers, including free wine and beer across the day and new hot meal options in economy class.

“While COVID-19 has forced a reduction in some in-flight services, we’re pleased to bring back some of our most popular options as customers take to the skies with Qantas again,” Ms Tully said.

The extension of the no change fee policy means passengers could plan their next trip with confidence, she added.

“By giving customers unlimited flight date changes for almost a year, we think it will encourage more people to book, helping to boost tourism, which is so vital to local economies and businesses around the country,” Ms Tully said.

Virgin Australia was expected to follow suit in coming days, and extend its no change fee policy from June to January, for bookings made before April 30.

The airlines’ move follows ongoing weakness in travel demand across the country despite the reopening of key borders in recent weeks, such as Queensland and Greater Sydney.

In contrast to the December reopening, when hundreds of extra flights carried thousands of people between states, airlines have taken a more cautious approach to adding capacity.

Queensland Airports’ chief executive Chris Mills said as a result the “rebuild” was happening at about half the pace of what they saw in late 2020.

“It is clear that consumer confidence has been impacted by border decisions which have occurred with little notice and without a consistent national framework,” said Mr Mills, who runs Gold Coast, Townsville, Mt Isa and Longreach airports.

“If borders can be kept open we anticipate flight and passenger numbers will increase in the lead-up to Easter.”

Brisbane Airport was seeing a similar trend with passenger numbers at about a third of pre-COVID capacity.

Qantas Aircraft on the tarmac at Sydney Airport. Sydney. Picture: NCA NewsWire / James Gourley

A Brisbane Airport spokeswoman said of those passengers, the majority were travelling within Queensland, with numbers from interstate still well down on pre-COVID levels.

“The uptick in passengers since borders reopened again on February 1 has not been as dramatic as the December increase, likely due to consumer confidence and seasonality,” she said.

“With the upcoming Easter period, we anticipate the vast majority of people who would travel interstate for a break, will stay within Queensland due to border uncertainties.”

Qantas and Virgin Australia have added some extra services on interstate routes but ongoing restrictions between some states and cities were proving a barrier to more frequent flights.

Qantas boss Alan Joyce recently lamented the ever-changing border restrictions as “a nightmare” with almost every state imposing its own set of rules.

Victoria’s requirement people coming from one local government area of Sydney self-isolate for 72 hours had dampened business travel between Australia’s two biggest cities, resulting in fewer flights on the route.

And South Australia’s demand that anyone coming from Greater Sydney, Wollongong or the Central Coast undergo three COVID tests in two weeks was also killing off demand.

Virgin Australia reported “steady” demand, but lower than that seen in response to border reopenings last year.

“In terms of our ramp up, we’re working to match this with travel demand,” a spokesman said.

In January the airline was operating at just under 40 per cent of pre-COVID capacity, well under the 60 per cent it had targeted.

Qantas has claimed it is back to 60 per cent of pre-COVID levels but had hoped to be at 80 per cent by this time.

It’s understood the border mayhem was also affecting the booking curve, with last-minute flight bookings becoming the norm among nervous travellers.