Qantas sent its support in the form of more cut-price Jetstar flights, for ramping up pressure on Virgin Blue and its planned New Zealand alliance on the hotly-contested trans-Tasman route. Qantas' low-cost subsidiary, Jetstar, announced that its New Zealand operations will see its seventh Airbus A320, entering service, in a move to defend market share.

This move will be able to increase the number of flights between Australia and New Zealand with the help of 38 weekly return services now. Three of the Jetstar's six single-class A320 177-seat Airbuses, operate on the route between Australian ports and New Zealand, while the other three follow the domestic NZ routes.

Qantas announced that services to Johannesburg from September will increased, which will consequently increase pressure on Virgin's unprofitable V Australia services on the route.

Virgin Blue's new Chief Executive, ex-Qantas Senior Executive, John Borghetti has revealed that he intends to reposition the airline's offering to chase more corporate travelers, who can afford costly tickets rather than economical leisure travelers.

Virgin Blue slit its profit outlook, to a range of $20 million to $40 million. But its shares nosedived at once, as investors discarded stock. Now its shares are trading at 30.5 cents.