Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Qantas Weighing Frequent Flyer Stake Sale as Capacity Moderates

May 8 (Bloomberg) -- Qantas Airways Ltd., the Australian airline that’s cutting 5,000 jobs in an attempt to reduce costs by A$2 billion ($1.9 billion), is weighing whether to sell a stake in its Frequent Flyer loyalty business.

Australia’s largest carrier was “working through the pros and cons” of selling part of its largest unit by operating profit, Chief Executive Officer Alan Joyce told a conference in Sydney today. The company could raise as much as A$1.56 billion selling a stake, JPMorgan Chase & Co. had said earlier.

Qantas is looking to cut costs and increase cash amid heightened competition with Virgin Australia Holdings Ltd. domestically that’s forced the carriers to cut ticket prices to fill seats. Seat-capacity growth is slowing to about 3.5 percent in the six months to June on domestic routes and is heading down to 4 percent to 5 percent internationally, Joyce said, raising the prospects that prices will become more sustainable.

“We’re still working through” a sale of the Frequent Flyer loyalty business Joyce said. “It’s a hugely complex issue.”

To contact the reporter on this story: David Fickling in Sydney at

To contact the editors responsible for this story: Anand Krishnamoorthy at Dave McCombs

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.