Qantas has announced plans to raise airfares and reduce flight capacity in response to soaring fuel costs. The airline's market update this week indicated that domestic operations will see the most significant cuts, potentially leading to higher ticket prices and fewer flight options for travelers. Despite recent price hikes, demand remains strong, particularly for international travel, as passengers shift their plans away from the Middle East. However, the weakened Australian dollar may impact the cost of holidays abroad, with a 2% drop in the currency's value over the past week.
Meanwhile, the future of David Jones, the iconic Australian department store, remains uncertain after it entered voluntary administration. Retail expert Gary Mortimer explained that the store's concession-based model means brands control their own inventory, potentially limiting the availability of bargains. Administrators are exploring restructuring options, including store closures, which could offer some discounts on remaining stock. David Jones, the world's oldest continuously operating department store, faces an uncertain future as it navigates financial troubles.
Amid rising interest rates, new data from Westpac reveals that a significant portion of Australians are ahead on their mortgage repayments. The bank reported that 37% of its customers are more than two years ahead, while 53% have at least a six-month buffer. Only 1% of customers are behind on their payments. The Reserve Bank's latest rate hike will add $107 per month to the repayments of a typical $700,000 loan over 25 years, with the big four banks set to pass on the new rates on Black Friday, which falls on Friday the 13th.