Qantas pulls back capacity in March From:AAP May 01, 2013 4:59PM Qantas has cut back the number of seats in the domestic market for a second consecutive month. Source: AAPQANTAS has pulled back the number of seats in the domestic market for a second consecutive month. The Flying Kangaroo reduced domestic capacity by 0.4 per cent in March and reported a drop in load factors, a measure of how full planes are, of 0.6 percentage points to 77.8 per cent. By contrast, the airline group's low-cost subsidiary Jetstar continued to pour extra seats into the local market in March, and improve its load factors. Qantas and Virgin waged a bruising battle in 2012 - Qantas and Jetstar added more flights on many short-haul routes and Virgin swapped smaller Boeing 737s with larger Airbus A330s on services to Perth. The 10.8 per cent rise in capacity in the six months to December - the highest increase in eight years - forced down airfares and led to weaker earnings for both Qantas and Virgin in the domestic market. While the latest traffic figures from Australia's two major airlines suggested the period of rapid capacity growth looks to have come to an end, White Funds Management investment manager Peter Borkovec said Qantas was still dealing with the surge in extra seats from 2012. "Qantas domestic is still struggling with capacity," Mr Borkovec said on Wednesday. "Jetstar is doing well." On Wednesday, Qantas said domestic yields - an industry measure of average airfares per passenger - across both Qantas and Jetstar were lower in March compared with a year ago "largely due to increased capacity in the domestic market". On Tuesday, Virgin Australia reported a 3.1 per cent increase in domestic seats in March, with yields up for the first time in six months.