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Qantas Group provides market update

September 25, 2023, Qantas Airways Ltd ADR (OTC-QABSY) – The Qantas Group provides the following update to inform the market of a material increase to investment in customer improvements, continued strength in travel demand and the impact of elevated fuel prices.

CUSTOMER IMPROVEMENTS

The Group will invest a further $80 million in customer improvements across FY24 in addition to the $150 million previously budgeted, which will be funded from profits.

This additional investment is aimed at addressing a number of customer ‘pain points’ through improvements such as better contact centre resourcing and training, an increase in the number seats that can be redeemed with Frequent Flyer points, more generous recovery support when operational issues arise, a review of longstanding policies for fairness and improvements to the quality of inflight catering.

Qantas is also working to accelerate some initiatives already underway, such as the re-platforming of the Qantas app. More detail on these actions will be shared in coming weeks.

DEMAND LEVELS

Overall travel demand remains strong, with trading conditions in the first quarter of FY24 similar to the last quarter of FY23.

Qantas and Jetstar expect to carry more than 4 million passengers over the September/October school holidays and football finals period on almost 35,000 domestic and international services. This compares with around 3.7 million passengers on approximately 28,000 services over the same four week period last year.

Latest survey data shows that travel remains a top spending priority among Qantas Frequent Flyers over the next six months, well ahead of entertainment, renovations and homewares[1]. The Group greatly appreciates the continued support from customers choosing Qantas and Jetstar.

FUEL, FX AND FARES

Fuel prices have increased by around 30 per cent since May 2023, including a 10 per cent spike since August. This is driven by a combination of higher oil prices, higher refiner margins and a lower Australian dollar.

If sustained, this is expected to see the Group’s 1H24 fuel bill increase by approximately $200 million to $2.8 billion after hedging[2]. A further $50 million impact is expected due to non-fuel related foreign exchange changes.

The Group will continue to absorb these higher costs, but will monitor fuel prices in the weeks ahead and, if current levels are sustained, will look to adjust its settings. Any changes would look to balance the recovery of higher costs with the importance of affordable travel in an environment where fares are already elevated.

CAPACITY AND NETWORK UPDATE

New aircraft deliveries and wet-leasing arrangements will help Qantas and Jetstar boost international capacity by 12 percentage points by the end of the calendar year – an increase of almost 50 additional flights a week.

This includes Qantas resuming its Sydney-Shanghai services and starting two new routes, Brisbane-Wellington and Brisbane-Honiara, as well as a new Jetstar service from Brisbane to Tokyo.

Both international and domestic capacity for 1H24 is materially unchanged from estimates given in late August 2023.

FINANCIAL FRAMEWORK

The Group remains in a very strong financial position, including its debt levels and continued strong revenue intakes.

The on-market share buyback of up to $500 million announced on 24 August 2023 is now 10 per cent completed. Shareholder approval will be sought at Qantas’ upcoming AGM to increase the headroom for further share buybacks that the Board may choose to do in future in line with the Financial Framework.

 


[1] QFF sentiment tracker,n=2,019.Data collected between 1 August 2023 and 31 August 2023. Sample of QFF members from Red Planet panel. Based on respondents’ intended changes to upcoming spending across different categories.

[2] Assumes 1H24 underlying into-plane market reference price of approximately A$191 per barrel.

 

 

 

 

Hola

Air New Zealand signs for two ATR 72-600’s plush options

Toulouse, France August 25, 2023 – National flag carrier Air New Zealand (OTC: ANZLY) and world’s number one regional aircraft manufacturer ATR, today announced the signature of a firm order for two brand new ATR 72-600 plus options for two more. Deliveries are scheduled for the second half of 2024 and the beginning of 2025. Air New Zealand will then operate the fourth largest ATR fleet worldwide.

These additional aircraft will support the airline’s growth, further strengthening its network across New Zealand. The lowest-emission regional aircraft on the market, these brand new ATR’s will be equipped with PW127XT engines, delivering an additional 3% fuel burn reduction compared to previous engine version, enabling a 45% reduction in CO2 emissions compared to similar-size regional jets.

About Air New Zealand

Air New Zealand’s story started in 1940, first taking to the skies between Auckland and Sydney on a flying boat. Known for its warm Kiwi hospitality, today the airline has 104 operating aircraft ranging from Boeing 787-9 Dreamliners and Airbus A320’s to ATR’s and Q300’s. Air New Zealand has a well-connected domestic business, connecting customers and cargo to 20 different regions around New Zealand. Internationally, the airline has direct flights to major cities across Australia, Asia, the Pacific Islands and the U.S., and through its strong relationships with alliance partners, offers customers more choice and convenience to connect further afield to hundreds of destinations. Air New Zealand has a particular focus on sustainability and its Sustainability Framework helps guide the airline’s efforts in tackling some of New Zealand’s and the world’s most complex challenges.

Virgin Australia Restarts International Flights

Thursday 16 December 2021 – Virgin Australia has restarted international flights, today operating the first of the airline’s daily Fiji services since being relaunched 12 months ago. The inaugural flight, departing Sydney International Airport, was sent off in spectacular style, with Virgin Australia CEO, Jayne Hrdlicka marking the occasion with a departure gate launch party to remember.

Passengers were treated to branded coconuts, free beach tote bags by Australian resort-wear brand Double Rainbouu, tropical Boost juices, and a performance by Fijian-Australian and 2022 Eurovision contestant, Paulini Curuenavuli, who sang a rendition of Madonna’s ‘Like A Virgin’ before a traditional Fijian song.

For the final departing gift, CEO Jayne Hrdlicka announced that all passengers would each receive a free Economy return flight anywhere on the Virgin Australia domestic network, as a thank you for their support and loyalty.

o celebrate the return of Virgin Australia international flights, Virgin Australia has dropped a 48-hour snap Fiji sale with return Economy fares available from as low as $369* between Melbourne and Fiji. Sale fares are now available to book at virginaustralia.com until midnight this Friday 17 December 2021, or until sold out.

Small Ship Cruise Line Windstar Resumes Operations in Tahiti for Vaccinated Guests

Seattle, Washington, July 16, 2021 – U.S. headquartered small ship cruise line Windstar Cruises has resumed cruising this week in French Polynesia/the Islands of Tahiti with vaccinated guests + crew aboard the line’s 148-passenger Wind Spirit sailing ship. Half of the line’s six yacht fleet is now back in the water cruising.

To celebrate Wind Spirit’s return, the line has added free drinks to its already enticing bundled pricing.

Windstar offers a convenient Air + Hotel package from Los Angeles International Airport that includes the round trip Air Tahiti Nui flight from Los Angeles, pre-cruise accommodations and a post-cruise day room, ground transfers in Tahiti, and a seven, 10, or 11 night boutique cruise in French Polynesia. Now on cruise vacations including air and hotel booked during the promotional period ending July 30, 2021, guests also receive the promise of a free beverage package (with unlimited select spirits, wine, beer, cocktails, and minibar items), guaranteeing an extra Mai Tai or three beneath a palm tree. If guests don’t imbibe, they can alternately choose shipboard credit to put towards other experiences, like a relaxing onboard spa treatment or shore excursions such as SCUBA diving, reef snorkeling, or even harvesting Tahitian black pearls.

Windstar typically sails year-round from Tahiti, where cruises take place on Wind Spirit, a 148- guest motorized sailing yacht specifically designed for the region and capturing the South Pacific trade winds in its billowing sails. However, Windstar’s reimagined, new all-suite Star Breeze yacht carrying 312 guests will begin sailings in the region on September 19 and will remain on a limited engagement in Tahiti until March of 2022, giving guests a unique chance to sail on the larger, more amenity-intensive yacht in gracious ocean view 277 square feet suites. Windstar offers guests a complimentary private event on their Tahiti cruises: a private beach party and locally sourced feast on one of Bora Bora’s tiny motus, followed by a kinetic fire-dancing performance. It is available on all sailings/both yachts.

Windstar is returning to operations in a phased manner, with its fleet of six yachts debuting on various dates through November, while requiring vaccines of all passengers amongst a host of health and safety precautions including testing, social distancing, masks, and high-tech air filtration. On June 19, Windstar’s Wind Star yacht resumed revenue operations in Greece, and on July 10, Windstar’s Star Breeze began sailing in the Caribbean, both with vaccinated guests and crew.

Windstar has plans to resume sailing on the following yachts in 2021 with vaccinated guests + crew:

Wind Surf – August 8, 2021 – Mediterranean

Star Legend – September 4, 2021 – Northern Europe

Star Pride – November 3, 2021 – Caribbean

For more details on Windstar Cruises, visit www.windstarcruises.com

QANTAS Announces Another New Queensland Route to the Whitsundays

Queenslanders will have more travel options to the world-famous Whitsundays with QantasLink launching direct flights from Brisbane to the Whitsunday Coast (Proserpine) for the first time in seven years.

From 17 September 2021, QantasLink will operate up to seven weekly return flights between Proserpine and Brisbane with its 74-seat Q400 turboprop aircraft, adding more than 1000 seats on the route each week.

It follows the new routes QantasLink commenced from Brisbane to Albury and Cooma earlier this week. Between Qantas, QantasLink and Jetstar, the Group has now launched more than 45 new routes since international borders closed, around half of which are into Queensland.

QantasLink CEO John Gissing said the new route would create stronger connections to the popular tourism destination.

Special fares on the new route are available from $109 one-way at qantas.com or through Travel Agents, until 10 July 2021, unless sold out prior.

The new Brisbane-Proserpine service will complement Jetstar flights to the Whitsunday Coast from Melbourne, Sydney and Brisbane.

Qantas has recently extended its Fly Flexible policy, offering customers who book flights before 30 September 2021 with unlimited ‘fee free’ date changes when travelling before 28 February 2022. (A fare difference may apply).

Frontier Airlines Begins Three New Nonstop Routes From Miami International Airport

MIAMI – March 8, 2021 – Low-fare carrier Frontier Airlines this week takes off with three new, nonstop routes from Miami International Airport (MIA) to Cancun, Mexico; St. Thomas, U.S. Virgin Islands and Punta Cana, Dominican Republic. In addition, next month, the airline will launch its maiden service to Central America from Miami with nonstop flights to Guatemala City and San Salvador.

Frontier now offers 28 nonstop destinations from Miami, including six international routes. The new flights to the Caribbean, Central America and Mexico represent Frontier’s commitment to expanding travel opportunities to exciting destinations while maintaining its ‘Low Fares Done Right’ approach.

“We’re pleased to expand in Miami with new flights to Cancun, Punta Cana and St. Thomas,” said Daniel Shurz, senior vice president of commercial, Frontier Airlines. “Frontier has grown rapidly at Miami International in recent years and we look forward to launching our first flights to Central America next month with nonstop service to Guatemala City and San Salvador. We’re bringing our ultra-low-fares and customizable travel options model to these new flights to offer our customers unprecedented affordability and value to these highly sought destinations.”

Ryanair Launches Over 700 Winter Route Destinations For 2021/2022 Season

Ryanair (London: RYA.L), Europe’s no. 1 airline, has today (11 Feb) launched its Winter 21/22 schedule, covering its most popular destinations for trips taking off from late October. Boasting over 700 routes across the Ryanair network – and further destinations to be released in the coming weeks – winter sun is where it’s at for 2021. Ever popular with its customers, Ryanair has launched routes to the likes of sunny Cyprus, Gran Canaria, the Greek islands, Sicily and Malaga for Winter ’21 and avid skiers who missed out on their trip to the slopes can dust off their skis with popular destinations such as Turin, Milan and Salzburg set to welcome visitors once again next winter.

In addition to winter sun and ski, customer can also book winter city breaks to Lisbon, Paris, Venice and many more. Having missed out on holidays and weekend breaks in 2020, an eclectic mix of destinations is on offer from Ryanair this winter spanning beach holidays, city breaks, cultural and foodie hotspots. To celebrate the release of Ryanair’s Winter ’21 / 22 schedule, Ryanair has launched a seat sale with fares available from €29.99 for travel from October ’21 – March ’22, available for booking on the Ryanair.com website only until midnight, Sunday 14th Feb 2021.

Statement from Ryanair’s Director of Marketing, Dara Brady

“While we believe the successful roll-out of the vaccine will see Europeans enjoying their favourite spots this Summer, Ryanair wants to give customers further choice and something to look forward to, whether that is a break to reunite with friends and family in July, or a winter sun getaway to the sunny Greek Islands in November. With 20m seats on sale on over 700 routes and further destinations to be released in the coming weeks, customers can now book a Winter getaway until the end of March 2022, always on the lowest fares.

We’ve added firm favourites Barcelona, Malta and Marrakech to the list of destinations this year, and to celebrate we’ve launched a seat sale with amazing fares available from just €29.99 for travel from October 2021 until end of March 2022, which must be booked before midnight Sunday, 14th Feb 2021. Since these amazing low fares will be snapped up quickly, customers should log onto www.ryanair.com”.

United Airlines to Offer Only Nonstop Flights Between Orange County and Honolulu

United Airlines (Nasdaq: UAL) today announced new convenient options for Hawaiian getaways this summer, offering the only nonstop flights between Orange County, California and Honolulu. The new route joins United’s previously announced service between Chicago and Kona and New York/Newark and Maui. With the additional new flights, United will offer nonstop service on more than 20 routes between the mainland and Hawaii. United’s Orange County – Honolulu service will be available for purchase on united.com beginning Saturday, February 13, 2021.

United has served Hawaii for more than 70 years and was the first airline to introduce service between the mainland and Kona and Maui in 1983. United remains a pioneer to the Hawaiian Islands with the launch of first-ever service between Chicago and Kona and between New York/Newark and Maui this summer. The new flights enable convenient travel times for customers connecting in Chicago and Newark from across the Midwest and East Coast. United’s service between Orange County’s John Wayne International Airport and Honolulu will be the only nonstop flight between Orange County and Hawaii and provides even more options for Southern Californians to get to Hawaii.

New Hawaii Summer Service

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Lufthansa to Operate A350-900 Flight from Hamburg to the Falkland Islands

On February 1, 2021, Lufthansa will be departing on the longest passenger flight in the history of its company, marking one of the most unique flights the airline has ever carried out. On behalf of the Alfred Wegener Institute, Helmholtz Centre for Polar and Marine Research (AWI) in Bremerhaven, the Lufthansa Group’s most sustainable aircraft, an Airbus A350-900, will be flying 13,700 kilometers nonstop from Hamburg to Mount Pleasant in the Falkland Islands. The flight time is calculated at around 15:00 hours. There are 92 passengers booked for this charter flight LH2574, half of which are scientists and the other half, being the ship crew for the upcoming expedition with the Polarstern research vessel.

“We are pleased to be able to support a polar research expedition during these difficult times. Commitment to climate research is very important to us. We have been active in this field for more than 25 years and have equipped selected aircraft with measuring instruments. Since then, scientists all around the world have been using the data collected during the voyage to make climate models more precise and improve weather forecasts,” says Thomas Jahn, fleet captain and project manager Falkland.  Since the hygiene requirements for this flight are extremely high, Captain Rolf Uzat and his 17-member crew entered a 14-day quarantine last Saturday, the same time that the passengers did. “Despite the crew restrictions for this particular flight, 600 flight attendants applied for this trip,” says Rolf Uzat.

The preparations for this special flight are immense. They include additional training for the pilots via special electronic maps for flight and landing as well as managing the kerosene available at the Mount Pleasant military base for the return flight. The Airbus A350-900 is currently stationed in Munich, where it is being prepared for the flight. In Hamburg, the aircraft is loaded with additional cargo and baggage, which has been extensively disinfected and will remain sealed until departure. Besides the catering, there are additional containers for the residual waste on board, since this can only be disposed after the aircraft arrives back in Germany. The Lufthansa crew includes technicians and ground staff for on-site handling and maintenance who will quarantine after landing in the Falkland Islands due to government requirements. The return flight LH2575, is scheduled to depart for Munich on 03 February and will be carrying the Polarstern crew, which had set out from Bremerhaven on December 20 to resupply the Neumayer Station III in Antarctica, and must now be relieved.

In order to make research as climate-friendly as possible, the Alfred Wegener Institute will offset CO2 emissions from business flights via the non-profit climate protection organization atmosfair – which is also the case for this particular flight.  The institute donates funds for biogas plants in Nepal for every mile flown, thereby reducing the same amount of CO2 emissions. This helps maintain the overall CO2 balance regardless of where in the world the CO2 emissions can be reduced. In addition to pure CO2 emissions, other pollutants such as nitrogen oxides and soot particles are also taken into account.

Preparations for the special flight began together with the Alfred Wegener Institute in the summer of 2020. The usual route via Cape Town was not feasible due to the infection situation in South Africa, leaving only the route via the Falkland Islands. After landing on the Falkland Islands, scientific staff and crew members will continue their journey to Antarctica on the research vessel Polarstern.

Frontier Airlines Announces New Nonstop Flights Between Orlando and Phoenix

Low-fare carrier Frontier Airlines today announces new daily nonstop flights between Orlando and Phoenix, plus the resumption of its popular San Diego route beginning in March 2021. To celebrate this new service, Frontier is offering fares as low as $69*, which are available now at FlyFrontier.com.

“Frontier is taking off in the new year with an unprecedented level of service at Orlando International Airport, which now includes daily flights to Phoenix, one of 60 destinations that Frontier will fly nonstop from Orlando in March,” said Daniel Shurz, senior vice president of commercial, Frontier Airlines. “Orlando continues to be incredibly popular with travelers across the spectrum, from vacationing families to adventure seekers, and Frontier offers unparalleled affordability for flyers visiting the Theme Park Capital of the World.”

New route from Orlando International Airport (MCO):

SERVICE TO SERVICE START SERVICE FREQUENCY INTRO FARE APPLICABLE DAYS FOR INTRO FARE: 
Phoenix Sky Harbor International Airport (PHX) March 11, 2021 Daily $69* Tuesday and Wednesday 

Returning route from Orlando International Airport (MCO):

SERVICE TO SERVICE START SERVICE FREQUENCY INTRO FARE APPLICABLE DAYS FOR INTRO FARE: 
San Diego International Airport (SAN) March 7, 2021 Daily $69* Tuesday and Wednesday 

These two routes join new Frontier nonstop routes from Orlando that start in February to Cancun, Miami, Punta Cana, Santo Domingo, St. Thomas, and Wilmington.

Frequency and times are subject to change, so please check FlyFrontier.com for the most updated schedule.

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