Australian travellers Qantas fares, David Jones administration and RBA rate rise, Digi Mart USA News (Australia): Australians love to travel, but they’ll soon have to pay even more for the privilege. In a market update issued this week, Qantas said it would continue to adjust fares and capacity in response to higher fuel costs.
That means more expensive tickets for consumers, and fewer flights to choose from on certain routes. The cuts will be coming from its domestic operations.
However, the carrier said recent price increases have not deterred its customers, with demand remaining resilient.
Qantas said international demand across its Qantas and Jetstar brands remains strong, with flyers redirecting travel away from the Middle East. Travellers may also want to consider currency movements, as the Australian dollar lost around 2 per cent over the week, raising the cost of certain popular holiday destinations.
It’s quite common for retailers entering voluntary administration to hold major sales and offload excess inventory, but the situation may be different for David Jones, where there could be less to sell. This week, the iconic Australian department store called in a team to manage the business after it wound up in financial trouble.
University of Technology retail expert Gary Mortimer told SBS’s On the Money Podcast that David Jones operates a largely concession-based model under which brands retain control. “They own that space, they own that inventory, they own that staff,” Mortimer said.
“It’s likely those brands will go in and collect that inventory whilst they can and move it to their physical store assets.”
The administrators are now working through restructuring options, including the closure of some stores. That is where some bargains may ultimately be found.
“If it’s a David Jones’ branded product, you’d expect to see either some discounting or ideally maybe moving that inventory to stores that will be retained,” Mortimer said. David Jones is the world’s oldest continuously running department store still operating under the same name.
While the Reserve Bank’s fifth interest-rate hike of the year will be painful for many, some borrowers may be able to absorb the increase. This week, Westpac revealed 37 per cent of its customers are more than two years ahead on their repayments.
In fact, 53 per cent have buffers of six months at the very least. Just 1 per cent of customers are behind.
Nevertheless, this week’s RBA rate rise will likely add $107 per month to the repayments of a typical $700,000 loan over 25 years. The big four banks will pass on their new rates on Black Friday, which, somewhat ironically, is also Friday the 13th.
