Qantas to Expand Fleet by Adding 18 New Aircraft in 2025

Qantas Group, the national carrier of Australia, on Thursday said that it will invest in renewing its fleet with 11 new aircraft arriving in the first half of this year. Seven more aircraft will be added in H2 of 2025.

The new investment will also see 42 Qantas Boeing 737 aircraft fitted with new cabins including next generation Business and Economy seats and larger overhead lockers.

A key highlight is the contribution from Jetstar’s new Airbus A321LRs and A320neos, which have grown to 21 aircraft providing scale benefits and are now delivering a step change in fuel efficiency, network growth and customer satisfaction.

Qantas’ fleet renewal is also underway with five A220s now in operation and performing well. However, as the fleet is still sub-scale, benefits were outweighed in the first half by costs associated with transitioning to a new fleet type.

Qantas Group CEO Vanessa Hudson said the suite of cabin upgrade programs across the Group complemented the largest fleet renewal program 18 New Aircraftin the airline’s history.

“Investing in our fleet is one of the most significant ways that we can transform the flying experience for our customers and make sure we’re consistently delivering a great journey. As we bring more new aircraft into our fleet, we are also making our existing aircraft look and feel like new,” Hudson said.

According to her, previous cabin upgrade programs have delivered great outcomes for their customers, and allowed the airline to bring next generation designs and technologies to current fleet that reflect how the customers want to travel.

“This investment in cabins will also support our people who are dedicated to providing the best inflight experience to our customers,” she added.

Additional investment is planned with construction to commence this year on new Auckland and Sydney International Business lounges while improvements are being made to the inflight dining experience for economy customers on Qantas international flights.

Financial Results

The Qantas Group achieved an Underlying Profit Before Tax of $1.39 billion, an increase of 11%, and a Statutory Profit After Tax of $923 million, an increase of 6%, for the half year ended 31 December 2024.

The airline’s net debt remained at $4.1 billion as at 31 December 2024 with the acquisition of new aircraft and return of capital to shareholders through on-market share buy-backs. It is expected to be at or below the middle of the target range for FY25, which is forecast to be $4.7 billion – $5.8 billion by the end of the financial year, with capex between $3.8 billion and $3.9 billion for the year weighted to the second half.

The Group ended the H2 of 2024 with more than $11.5 billion of liquidity, including $2.3 billion in cash, $1.2 billion in committed undrawn facilities and more than $8 billion in unencumbered fleet and other assets.

The performance was driven by the strength of the Group’s dual brand strategy with demand for travel remaining strong across all customer segments. Qantas and Jetstar’s domestic and international businesses delivered increased profitability carrying almost 10% more customers.

Premium and corporate travel remained strong for Qantas while Jetstar carried a record number of customers in a high cost of living environment, with around one in three flying for less than $100.

Qantas Loyalty also performed well, underpinned by active member engagement and cash inflows from partners growing by 11% and 18% respectively, as well as a significant investment in increased reward availability through the roll out of Classic Plus.