Qantas predicts huge $400m boost

Qantas is predicting changes to its fleet and ultra-long haul flights will drive a whopping $400m in earnings when the planes finally hit the sky.

The national carrier is on track to hit a record profit of $2.48 billion for the latest financial year – almost $1 billion higher than pre-Covid profits.

Highly-anticipated longhaul flights between Australia, Europe and North America - known as Project Sunrise - are expected to drive a “significant incremental” increase to earnings.

Another factor is the 12 Airbus A350-1000 aircraft that were ordered specifically to deliver the direct route services to London and New York.

“(Project Sunrise) is expected to deliver significant incremental earnings increases, reaching an estimated $400+ million EBIT per annum in the first full year of having all 12 aircraft in service,” Qantas said in a statement outlining their 2030 strategy.

Inaugural flights are scheduled to takeoff in late 2025 and will cut down point-to-travel time by up to four hours compared to routes with one stop.

Qantas Group chief executive Alan Joyce said updates to the airline’s longterm strategy is proof of the business’ transformation since the pandemic.

“This is a structurally different business than it was before Covid, operating in markets that have also changed,” he said.

Arrivals of nextgeneration aircraft are central to the airline’s plan to adapt to industry changes.

“New technology is central to our plan and the nextgeneration aircraft that have started arriving will transform our network over the next few years,” he said.

“We’ll be able to serve our customers better, reduce our cost base through lower running costs and carve out some new competitive advantages.”

Qantas chief financial officer and incoming chief executive Vanessa Hudson said the strategy showed the airline was making “ambitious but achievable goals.. We’re confident in reaching our FY24 margin targets,” she said.