Sunrise to drive QF EBIT
The introduction of QF’s new Airbus A350 ultra-long haul fleet is being forecast to drive an additional $400 million in annual profit once all 12 of the aircraft are in operation.
The ‘Project Sunrise’ aircraft will allow non-stop flights from Australia’s east coast to ports such as London and New York, with CEO Alan Joyce saying they will drive long-term structural advantages to the business.
During an investor update today Joyce also highlighted the strong contribution of QF’s 787-9 non-stops from Perth to Europe, noting that previously the double daily London A380 route via Dubai and more recently Singapore had been loss-making.
The PER-LHR route is the carrier’s best performing service in terms of customer satisfaction in Economy class, while the point-to-point routes enabled by the 787-9 also provide improved earnings on Melbourne-Dallas, Sydney-Johannesburg and Auckland-New York, he said.
QF also flagged the same strategy could be applied to potential new opportunities such as non-stop flights from Australia to Seattle, Paris and Chicago.
The carrier is also targeting strong earnings growth from its loyalty business, with a 2030 vision for it to contribute up to $1 billion to underlying profit.
Jetstar will also play a key role in maintaining the company’s performance, with the presentation highlighting a range of initiatives including FareCredit, which allows customers to cancel non-refundable fares and receive a voucher; new methods to select bundles which have improved conversion rates; and a newly released dynamic seat map which allows differential pricing across the cabin.
More from QF on page six.