Tag: jetstar (Page 1 of 3)

Qantas Group provides market update

September 24, 2023 / WIL BALDWIN

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.

Australia Back on Tourist Map as International Visitors Return

February 21, 2022 / WIL BALDWIN

Qantas flights from eight overseas destinations are touching down in Australia today, bringing the first international tourists in almost two years and an eagerly anticipated boost for the country’s tourism industry.

The Qantas Group will fly more than 14,000 passengers into Australia this week as quarantine and border barriers for international tourists come down.

QF12 from Los Angeles was the first to land at 6.20am and flights from other international destinations including Vancouver, Singapore and London will arrive into Sydney throughout the day. Jetstar’s first unrestricted international flight JQ18 will touch down in Melbourne from Phuket at 10.05am and QF70 from Delhi to Melbourne will arrive at 1.35pm.

Qantas Group CEO Alan Joyce said bookings had been strong since the Australian Government announced the country was opening to international visitors, and today’s arrivals will be the first of many.

Qantas restarted its international network for Australian citizens and visa holders on 1 November 2021, with a number of routes coming online since then. Sydney to Dallas recommenced flying on 16 February, and flights to other destinations are scheduled to relaunch in coming weeks including:

Melbourne to Honolulu (Jetstar) – From 1 March
Sydney to Honolulu (Jetstar) – From 3 March
Melbourne to Denpasar (Jetstar) – From 14 March
Sydney to Denpasar (Jetstar) – From 15 March
Brisbane to Singapore – From 27 March
Sydney to Manila – From 27 March
Sydney to Denpasar – From 28 March
Darwin to Dili – From 30 March
Brisbane to Los Angeles – From 1 April

QANTAS and Jetstar Airlines Adjust Third Quarter Flight Capacity Settings

January 16, 2022 / WIL BALDWIN

Qantas and Jetstar are adjusting flying levels to better match travel demand in light of the sudden growth in COVID-19 cases. The Qantas Group now expects domestic capacity for the third quarter of FY22 to be at around 70 per cent of pre-COVID levels, down from the 102 per cent that had been planned. The schedule changes are focused on reducing frequency of services and size of aircraft to minimise inconvenience for passengers as much as possible.

The Group’s total international capacity for the same period will fall from 30 per cent to around 20 per cent of pre-COVID levels. This reduction is driven by increased travel restrictions in countries like Japan, Thailand and Indonesia and is mostly impacting Jetstar’s leisure routes. Other markets – such as London, Los Angeles, Vancouver, Johannesburg and India – continue to perform well.

Customers will be contacted directly from late January if their booking is impacted by cancellations and offered alternative flights that in most cases are likely to be a difference of a few hours if travelling domestically.

Qantas and Jetstar continue to have 100 per cent of their available Australian-based crew stood up, which has helped to minimise the resourcing impacts of some needing to self-isolate during the summer peak. This 100 per cent crewing level will be maintained despite the capacity reductions announced today, giving both airlines a significant buffer to manage ongoing isolation requirements and resulting in a more reliable schedule for passengers.

An assessment on the financial impact of these changes will be given at the Group’s half year results in late February, by which time a clearer picture will have emerged on swing factors such as actual demand levels; potential loosening or tightening of travel restrictions in countries overseas; and consumer response to the reopening of Western Australia next month. No material adjustments have been made to capacity expectations for Q4 FY22.

To give customers more confidence when they book international and domestic flights, Qantas has extended Fly Flex, which enables customers to change their travel dates as often as they need, fee-free (a fare difference may apply).

First Qantas A380 to Land Back in Australia Today

November 9, 2021 / WIL BALDWIN

A familiar and hard-to-miss sight will return to Australian skies today with one of the Qantas (OTC: QABSY) iconic A380 aircraft set off to land back in Sydney, 593 days after it departed Australian shores.

Hudson Fysh, named after one of Qantas’ founders, is expected to touch down at Sydney Airport around 3.00pm more than 19 hours after it departed Dresden, Germany. The aircraft recently underwent scheduled maintenance for a new landing gear, after spending the best part of two years in storage during the COVID-19 pandemic.

Its early return comes as the airline gears up for the first two of the superjumbos to return to service in April 2022, following strong demand for international travel, particularly on key routes to Los Angeles and London.

Qantas has taken close to half a million domestic bookings in the past two weeks, compared with around 20,000 in a two-week period in August.

Jetstar’s recent international sale saw 75,000 seats sold in 72 hours.

Demand for seats on Qantas’ London to Sydney service has been extremely strong, with Aussies reuniting with family and friends in time for Christmas and more flights added as a result.

Originally expected to remain in long term storage in the Californian desert until the end of 2023, Qantas has since announced that five A380s with upgraded cabins would return ahead of schedule with two to operate flights to Los Angeles from April 2022 and three to operate flights to London from November 2022.

The airline is now working to further accelerate the return of the A380s, with superjumbo flights to London brought forward to July 2022. In addition, a sixth aircraft will arrive before the end of calendar year 2022, with the remaining four A380s expected to return to service by early 2024.

Hudson Fysh will undergo additional maintenance checks in Australia before taking to the skies again in coming weeks as part of crew training.

QANTAS Unveils Vaccine Reward Mega Prize Campaign

August 23, 2021 / WIL BALDWIN

A year’s worth of free flights, Accor hotel stays and bp fuel up for grabs*
Free Qantas Points, Status Credits or $20 flight discount for fully vaccinated Australians
Qantas teams up with Australian singer Tones And I to launch TVC to ‘Be Rewarded’

The Qantas Group is launching its reward campaign for COVID-19 vaccinated Australians to recognise their role in helping the country get out of lockdown.

From tomorrow, fully vaccinated Australian-based Frequent Flyers who are 18 and over will be able to claim their reward through the Qantas App by choosing one of three options:

1000 Qantas points
15 status credits (which help Frequent Flyers move up between Silver, Gold and Platinum tiers)
$20 flight discount for Qantas or Jetstar

Members will then be automatically entered into a mega prize draw to win a year’s worth of flights, accommodation and fuel.

Ten mega prizes will be up for grabs with a winner selected from each state and territory and two mega prize winners as part of a national TV campaign.

Winners of ten mega prizes will receive a year’s worth of flights to take off to more than 60 destinations around Australia, with free accommodation across 345 Ac cor hotels, resorts and apartments (including Sofitel, Pullman, Peppers, Mantra, Mercure, Mövenpick, Novotel and Ibis) and top up their cars with free fuel from any of bp’s 1,400 service stations across the country.

Winners will also be able to take off to any Qantas and Jetstar international destination when borders start to open.

Qantas Group CEO Alan Joyce said the vaccine rollout was critical for protecting public health and key to breaking the cycle of lockdowns.

Australians can claim their points, status credits or flight discounts and be automatically entered in the mega prize draw by downloading the Qantas App (via the App Store or through Google Play), using their Medicare app to access and upload their COVID-19 digital vaccination certificate and selecting their reward choice. Vaccination certificate information will be deleted upon verification.

Click the link below to read the full story!

https://www.qantasnewsroom.com.au/media-releases/qantas-unveils-vaccine-reward-mega-prize-campaign/

QANTAS Group to Require Employees to be Vaccinated Against Covid-19

August 17, 2021 / WIL BALDWIN

The Qantas Group will require all employees to be fully vaccinated against COVID-19 as part of the national carrier’s commitment to safety.

Frontline employees – including cabin crew, pilots and airport workers – will need to be fully vaccinated by 15 November 2021 and the remainder of employees by 31 March 2022. There will be exemptions for those who are unable for documented medical reasons to be vaccinated, which is expected to be very rare.

The policy follows consultation with Qantas and Jetstar employees including a survey sent to 22,000 people to seek their views on vaccination. The 12,000 responses received makes it one of the biggest single surveys on this topic in Australia. The results showed that of those who responded:

89 per cent had already been vaccinated or are planning to be.
4 per cent were unwilling or unable to get the jab.
Around three-quarters think it should be a requirement for all employees to be vaccinated and would be concerned if other employees in the workplace weren’t vaccinated.

Thousands of aviation workers supporting international flights in New South Wales, South Australia and New Zealand are already required to be vaccinated by those jurisdictions. Multiple airlines around the world have also made it a requirement.

Announcing the policy, Qantas Group CEO Alan Joyce said: “Having a fully vaccinated workforce will safeguard our people against the virus but also protect our customers and the communities we fly to.

Further discussions will take place with employees, their health and safety representatives and unions over the coming weeks on the detail of the policy, including how medical exemptions will be applied.

In a separate survey of more than 1000 Qantas customers, 92 per cent said they expect Qantas crew to be fully vaccinated.

QANTAS Group Stands Down 2,500 Crew in Response to Domestic Border Closures

August 6, 2021 / WIL BALDWIN

Around 2,500 frontline Qantas and Jetstar employees will be stood down for an estimated two months in response to ongoing COVID outbreaks.

The stand down is a temporary measure to deal with a significant drop in flying caused by COVID restrictions in Greater Sydney, in particular, and the knock-on border closures in all other states and territories. No permanent job losses are expected.

Today’s decision will directly impact domestic pilots, cabin crew and airport workers, mostly in New South Wales but also in other states given the nature of airline networks. Employees will be given two weeks’ notice before the stand down takes effect, with pay continuing until mid-August.

Income support in the form of government disaster payments will be key to helping eligible employees get through this challenging period and the Qantas Group welcomes the targeted Federal Government support offered for those stood down outside of declared hotspots and to retain domestic aviation capability.

Qantas Group CEO Alan Joyce said the difficult decision to trigger stand downs reflected the reality confronting many businesses operating in New South Wales.

QANTAS Announces Another New Queensland Route to the Whitsundays

July 11, 2021 / WIL BALDWIN

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).

Qantas and Jetstar Meet Strong Domestic Demand with More Aircraft and Flights

June 20, 2021 / WIL BALDWIN

The Qantas Group is preparing for continued growth in domestic travel demand, with additional aircraft to be made available for Qantas and Jetstar flying.

Additional E190’s for QantasLink

The national carrier today announced an expansion of its three-year deal with Alliance Airlines, which provides QantasLink with capacity using Alliance’s Embraer E190 regional jet aircraft and the flexibility to respond to changing market conditions.

The expanded agreement will see the airline increase its options under this deal from 14 jet aircraft to a total of 18. Of this, three are already flying with another five to enter service by October. The E190s will be painted in QantasLink livery and are part of Qantas growing its domestic capacity to at least 107 per cent of pre-COVID levels in FY22.

The first of the 94-seat E190 jets started flying on the QantasLink network last month. The jet’s five-hour range makes it well suited to linking regional centres with smaller capital cities. The introduction of E190s also frees up Qantas’ Boeing 737 aircraft to be redeployed across the domestic network, enabling the airline to launch a number of new routes and add frequencies on existing ones.

Canberra-Adelaide is the latest route to benefit from additional flights made possible by the E190, with frequencies to double from nine per week to 18 per week from mid-July.

Jetstar boosts its Australian-based A320 fleet

Demand for low-cost leisure travel remains strong due to closed international borders and structural changes in Australia’s aviation market. As a result, Jetstar’s Australian domestic network is set to grow to 120 per cent of its pre-COVID schedule in FY22.

To help meet the increased demand, three Airbus A320 aircraft will be temporarily redeployed from Jetstar Asia in Singapore while international travel in the region faces a slower recovery.

These aircraft join the six Airbus A320 aircraft on loan to Jetstar Airways from Jetstar Japan and up to five Boeing 787-8 aircraft set to operate domestically until international travel resumes.

Qantas Adds Seven New Routes, Puts Dreamliner on Domestic Route

May 24, 2021 / WIL BALDWIN

Qantas customers can now book seven new domestic routes and travel on more widebody aircraft between major capital cities to help meet strong demand for domestic travel across Australia.

The new routes – Townsville to Adelaide/Melbourne/Sydney, Adelaide to Cairns/Hobart, Sydney-Uluru and Perth-Gold Coast – provide direct connections and reduce travel time for customers. They bring the total number of routes Qantas and Jetstar have added since the start of the pandemic to 45.

Five of the routes will be operated by Embraer E190 regional jets as part of QantasLink’s partnership with Alliance Airlines. The first Qantas flights operated by the 94-seat E190s took off today between Adelaide, Darwin and Alice Springs.

Customers will also see more widebody aircraft with Business Suites on flights between the East Coast capital cities into Perth and Darwin.

Usually used for long haul international flights including Perth-London, the 236-seat Boeing 787-9 Dreamliner will begin operating up to nine Sydney to Perth flights per week.

Widebody Qantas Airbus A330-200 aircraft, which serviced international routes into Asia, will operate on more flights into Darwin from Sydney and Brisbane, and also into Perth from Sydney and Melbourne. These will be added to the A330s already flying on east-west routes.

The additional flying will see Qantas’ capacity exceed 100 per cent of pre-COVID levels in the coming months and the Group’s market share around 70 per cent.

Qantas Domestic and International CEO Andrew David said the new routes would support the growing demand for domestic tourism.

NEW ROUTES

Route	Start Date	Return flights per week	Aircraft
Adelaide – Townsville	August 2021	3 per week	E190
Adelaide – Cairns	August 2021	4 per week	E190
Adelaide – Hobart	September 2021	Up to 7 per week	E190
Sydney – Townsville	September 2021	7 per week	E190
Melbourne – Townsville	September 2021	7 per week	E190
Perth – Gold Coast	September 2021	3 per week	B737
Sydney – Uluru	March 2022	5 per week	B737

Fares are available from today with Qantas offering special fares including $139 on Adelaide-Hobart, $179 on Sydney-Townsville and $229 Perth-Gold Coast. Special fares are available at qantas.com or through Travel Agents, until 11:59pm 27 May, unless sold out prior.

The new flights add to Jetstar’s existing services across six of the routes, providing a range of travel options for Qantas Group customers.

ADDITIONAL WIDEBODY FLYING

Route	Added or upgauged flights	Aircraft	Total weekly flights (all aircraft)
Sydney-Perth	Up to 9 per week	787 Dreamliner	34
Up to 4 per week	A330
Melbourne-Perth	Up to 24 per week	A330	37
Sydney-Darwin	Up to 7 per week	A330	12
Brisbane-Darwin	Up to 3 per week	A330	9

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