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Tuesday 30 May 2023

Qantas unveils details on its future strategy

Qantas has released new detail on its strategy through to 2030, as the Australian national carrier moves from what it describes as "recovery to renewal and growth".

My flight from Melbourne to Hobart yesterday was only an hour late, so things appear to be on the up.

At its first Investor strategy day since the Covid pandemic, members of the airline's management committee outlined long-term plans across key categories of customer experience, sustainability and satff.

The details unveiled included the next-generation fleet arriving from this year onwards (A220, B787 and A320-family). 

There are also plans for an overhauled Qantas app, launching towards the end of 2023, that will give customers more control over their bookings and the introduction of baggage tracking.

There will also be changes to Qantas’ boarding process from October aimed to improve on-time performance and to better recognise tiered frequent flyers.

Qantas will also launching a $400 million Climate Fund - promoted as the largest of its type for any airline - to accelerate progress towards sustainability targets.

Income is important, however, and through cost and revenue improvements, Qantas aims to sustain margins of 18% for Qantas domestic and 15% for Jetstar domestic from FY24 onwards.

Outgoing Qantas Group CEO Alan Joyce (above) said: “This is a structurally different business than it was before Covid, operating in markets that have also changed. We’re very well placed to take advantage of the opportunities that creates and the detail we’ve released today shows our strategy to do it.

“New technology is central to our plan and the next-generation aircraft that have started arriving will transform our network over the next few years. We’ll be able to serve our customers better, reduce our cost base through lower running costs and carve out some new competitive advantages.

“Our revenue projections and track record for ongoing transformation show we can invest heavily in people and technology at the same time as generating strong returns for shareholders. That’s exactly the kind of national carrier we want to be.”

Group CFO and CEO-designate, Vanessa Hudson, said: “We’ve been clear on the significant level of investment in the pipeline and today we’ve given some detail on the returns we expect from it.

“We’re confident in reaching our FY24 margin targets and we’ve set some ambitious but achievable earnings goals beyond that, because we think ambition is key to long-term performance.

“All of the extra activity we have planned has to be underpinned by a focus on sustainability, particularly decarbonisation. We’re determined to be a leader in this space and that’s supported by the new commitments we’ve made today, as well as calling for more action industry-wide in the form of a sustainable aviation fuel mandate."

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