Qantas backs break-even plans

Joyce says airline's strategy to revive international arm by FY15 progressing.

Qantas Airways (QAN) chief executive officer Alan Joyce believes the airline will still return its beleaguered international business to a break-even position by fiscal 2015, despite recent pressure on fares as a result of increased capacity, The Australian Financial Review reports,

According to the newspaper, Mr Joyce had hoped foreign carriers would be deterred from increasing capacity into the Australian market on the back of a 5% jump last year due to the decline in the Australian dollar, however, Singapore Airlines, Cathay Pacific, Malaysia Airlines and AirAsia X have all added flights aggressively.

"Certainly in the traffic statistics we are reporting at the moment, international yields are down," Mr Joyce told the newspaper.

"We knew international yields would come down with the reaction to what we did with Emirates. But in the medium to long term, we do believe we are on track to meet our targets" (see Qantas's take-off plans). 

"The weaker Aussie dollar – provided the fuel price comes down – will be beneficial and I think will discourage people adding capacity to the Australian market."

Qantas convenes its annual general meeting on Friday in Brisbane, with Mr Joyce likely to make more outlook-centric comments.