Qantas Reveals Loss-Making Kangaroo Route with Airbus A380 Before Transition to 787-9

Qantas, the Australian airline, has disclosed that its renowned “Kangaroo Route” flights between Australia and London, UK, were not profitable prior to the introduction of the Boeing 787-9 Dreamliner.

Previously, Qantas operated two daily flights to London Heathrow Airport (LHR). QF9 departed from Melbourne Airport (MEL) with a stop at Dubai International Airport (DXB), while QF1 departed from Sydney Airport (SYD) with a stop at DXB before reaching LHR.

In March 2018, the QF1 SYD-DXB-LHR route was revised to include a stop at Singapore Changi Airport (SIN). QF9 was introduced as a flight between MEL, Perth Airport (PER), and LHR, utilizing a Boeing 787-9 aircraft.

During Qantas’ recent Investor Day presentation on May 5, 2023, the airline highlighted four factors that contributed to the success of the revised route with the Boeing 787-9:

• Smaller aircraft size, reducing commercial risk and enabling access to smaller markets for improved revenue management.
• Long-haul capability without the need for larger aircraft.
• Premium cabin configuration that generates higher-quality revenue.
• State-of-the-art product offering that enhances the Net Promoter Score (NPS) across all cabins.

Qantas further stated that the Boeing 787-9 has opened up opportunities to explore routes to various cities worldwide, including Paris, France, Chicago, and Seattle in the United States.

The airline has already commenced flights from PER to Rome–Fiumicino International Airport (FCO), from MEL to Dallas Fort Worth International Airport (DFW), from SYD to Johannesburg O. R. Tambo International Airport (JNB), and from Auckland Airport (AKL), New Zealand, to New York John F. Kennedy International Airport (JFK). Flights to JNB and JFK are scheduled to start in June 2023.

Qantas is expanding its long-haul fleet, which includes the addition of three Boeing 787-9s in the fourth quarter of 2023. One aircraft has already been delivered in April 2023, and two more are expected soon. With these additions, Qantas will have a total of 14 Boeing 787-9s, including the recently received aircraft (VH-ZNL).

Additionally, Qantas operates 18 Airbus A330-200, 10 A330-300, and 10 A380 aircraft, with seven A380s currently active. The airline plans to add one more A380 by the end of 2023, bringing the total number of superjumbos to eight.

Qantas anticipates receiving Airbus A350 aircraft for its Project Sunrise between 2026 and 2028. The delivery of A350s will allow Qantas to redeploy its Boeing 787-9s to optimize its international flight network.

The promotion of ultra-long-haul flights through Project Sunrise aims to maximize revenue from passengers seeking non-stop services. Qantas considers point-to-point connections to be crucial for its customer base. The project will also benefit domestic passengers and members of the airline’s loyalty program.

To support its growth, Qantas plans to hire up to 8,500 new employees over the next 10 years, with 2,300 operational roles to be filled in the next 18 months.