Qantas CEO Vanessa Hudson has expressed confidence that the arrival of new aircraft will boost returns on the airline's global network, despite a 9.2% slump in Qantas shares after its international unit's earnings unexpectedly fell. The company is facing rising costs from wages and aircraft maintenance. Hudson remains "proud" of the company's performance, even as these offshore headwinds overshadowed record overall earnings. bloomberg.com
The airline recently reported a record profit in the first half, with earnings for the six months ending December 31 climbing 5.1% to A$1.46 billion ($1.04 billion), exceeding analysts' expectations. This growth was primarily attributed to the replacement of older, fuel-hungry jets in its domestic fleet with new Airbus SE aircraft. Qantas also announced a share buyback of up to A$150 million. bloomberg.com
Qantas has been making significant strides in its narrowbody fleet renewal, with Airbus A220 deliveries beginning in December 2023 and A321XLR deliveries starting in June 2025. The airline plans to introduce the A321XLR to international service early next year. Widebody renewal will accelerate from next year with the arrival of the first A350-1000ULRs. The company is also considering further orders to complete its widebody renewal efforts. This comprehensive fleet overhaul, which started in 2017, is a major undertaking involving billions of dollars. centreforaviation.com aapnews.aap.com.au
However, this extensive fleet renewal program comes with a significant cost. One analyst, Angus Hewitt of Morningstar, who holds the sole "sell" rating on Qantas among 16 analysts, warns that a A$20 billion ($13 billion) bill for replacing its aging fleet could pose a risk to the airline's record stock rally. Despite this, Qantas's stock surged 65% in the 12 months prior to June 2025, making it the fourth-best performer on the Bloomberg World Airlines index. bloomberg.com
As part of its long-term strategy, Qantas announced London as the first destination for its Project Sunrise non-stop flights from Sydney, with tickets going on sale in February and flights launching in October 2027. These flights, using modified Airbus A350-1000ULR jets, will cut the "Kangaroo Route" to London to 19 to 21 hours. This initiative is expected to add over A$400 million a year to earnings, replicating the roughly 20% premium achieved on Perth-London flights. The first A350-1000ULR is due for delivery in April 2027, about five years later than originally expected due to pandemic and supply chain delays. aapnews.aap.com.au
