Qantas Unveils Airbus A380 Retirement Plans
Qantas has disclosed its strategic retirement plans for its largest aircraft, the Airbus A380, while concurrently placing orders for additional Airbus A350-1000, Boeing 787-9, and 787-10 aircraft. These new acquisitions are intended to replace the A380s and refresh the fleet by around FY32.
The forthcoming A350s that will eventually replace the A380s are still in the option stage. The airline has ordered 12 Airbus A350-1000s, now scheduled for delivery from FY28. Qantas is also negotiating additional purchase rights equally split between both Airbus and Boeing, providing flexibility for future growth and the planned transition from 10 A380s to A350s around FY32.
Simultaneously, Qantas has confirmed the acquisition of 12 Boeing 787s, consisting of four 787-9 and eight 787-10 models, with deliveries commencing from FY 2027. These modernized A350s and 787s will phase out the older Airbus A330 aircraft, which will have an average age of 21 years by FY27.
Alan Joyce, the outgoing Qantas Group CEO, stated, “This represents another significant investment in our national airline, benefitting both our passengers and employees.” Vanessa Hudson, the incoming CEO, added that these orders were influenced by the success of the narrow-body and Project Sunrise campaigns, resulting in favorable pricing and delivery slots.
Hudson further emphasized the flexibility of the fleet plan, enabling adjustments based on market conditions.
Qantas has gradually reintroduced its Airbus A380s as international markets reopened post-pandemic. Presently, the airline operates seven out of its 10 superjumbos, while the remaining three undergo maintenance following extended storage.
The previous announcement by Joyce indicated plans to operate the A380s until the 2030s, with all 10 aircraft serving customers out of Australia by 2024.
Profitable Return and Future Outlook
Qantas also reported its FY 2023 results, marking a return to full-year profitability since the onset of the pandemic. The net profit for the period stood at AUD1.7 billion ($1 billion), highlighting a significant turnaround in both financial performance and service quality over the past year.
Joyce acknowledged the robust travel demand and highlighted the airline’s expansion efforts, including new aircraft deliveries and route openings.
During an investor presentation, Qantas emphasized its strong position, driven by the Dual Brand strategy and Loyalty membership base, enabling the Group to navigate evolving macroeconomic conditions.
The airline also noted that travel intent remains strong, with domestic intent to travel at twice pre-COVID levels and international travel intent at 60-80% higher than pre-COVID levels during the past year.
Qantas reiterates its commitment to achieving FY24 targets, which include deploying 95% of pre-COVID capacity by the end of the financial period ending on June 30, 2024.