Qantas (QF, Sydney Kingsford Smith) will order two dozen long range widebodies, including twelve A350s and twelve B787s, to replace existing A330 and A380 types. The airline confirmed the order in Sydney on August 24 when announcing their FY22/23 results.
The order, which Qantas calls the "final piece of its jet fleet renewal program," is split between both manufacturers to provide maximum flexibility for future growth. The B787s will progressively replace the carrier's twenty-eight A330s, and the A350s will replace the carrier's ten A380-800s, which Qantas intends to start retiring from FY32. There are also additional purchase rights options.
"We can draw down the purchase rights as needed for further replacement of aircraft, or for future growth," said Qantas Group CEO Alan Joyce. "Our financial framework will continue to guide our decision-making, and the phasing of these orders, coupled with the flexibility to shift deliveries, gives us confidence that we can fund this within our debt range and through earnings while we continue to return money to our shareholders." The Qantas Group includes Qantas, QantasLink, Jetstar Airways, Qantas Freight, and a highly profitable loyalty division.
The firm Boeing order includes four B787-9s and eight B787-10s, while the Airbus order sees Qantas take more of the A350-1000s, a type the carrier intends to begin inducting soon to begin servicing its Project Sunrise flights. Deliveries from both manufacturers will start in FY27 and continue well into the 2030s, while the purchase rights options extend through FY37.
Built into the order is a partnership with Airbus and Boeing to access 500 million litres of sustainable aviation fuel (SAF) from 2028, representing 90% of the SAF required to meet the Qantas Group's interim 2030 sustainability goals. The group will source eighty million litres of the fuel from existing SAF facilities while the remainder will come from new projects.
Separately, the group reported an FY22/23 underlying profit before tax of AUD2.47 billion Australian dollars (USD1.6 billion) and a statutory after-tax profit of AUD1.74 billion (USD1.13 billion) for the 12 months to June 30, 2023. Joyce calls it a substantial turnaround in the group's fortunes.
Editorial Comment: Article updated to reflect confirmation of the aircraft order - 24Aug2023 - 06:31 UTC