ANALYSIS: The airline is getting started on the largest fleet renewal project in its 100-year history, taking delivery of nearly 300 new aircraft over 10 years.
in four years on Tuesday, the bears – few as they are – would have hoped to get more clarity on how the company plans to “walk and chew gum at the same time”, as incoming chief executive and current chief financial officer Vanessa Hudson puts it.
Vanessa Hudson speaking at a news conference last month. Qantas had “flexibility to adapt to conditions”, UBS analysts concluded.“[Qantas has] a well-established capital allocation discipline, and we are committed ... to striking the right balance in terms of investing in our business and also ensuring returns to shareholders,” she said.Despite the slight scepticism these promises were viewed with just a few months ago, analysts came away optimistic that the job could be done.
Qantas had “flexibility to adapt to conditions”, Mr Fromyhr concluded, with the new fleet set to structurally lower the cost base and unlock new route options. On the flexibility front, the company has already brought forward some payments to manufacturer Airbus to take advantage of travel’s strong rebound from COVID-19 and the record profits it is making.
This “optionality” was referenced in Qantas’ presentation on Tuesday – Ms Hudson said the carrier had $10 billion of liquidity available to it and debt was well below targets, so the company could borrow more. It also has plenty of unencumbered planes to secure loans against, as Qantas showed in 2020 when it raised $1.05 billion against its Boeing 787 aircraft.
The full Project Sunrise network is expected to earn around $400 million in its first full year with all 12 A350s operational, likely by 2030.Jarden analyst Jakob Cakarnis said that while Project Sunrise “has plenty of optionality”, the “capex envelope still needs to be firmed up” to get a more certain view on its benefits. Meanwhile, even with Project Sunrise, other international routes will creak with ageing Airbus A330s – already 16.5 years old – and A380s for longer than they should.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Expert reveals why Australia can be at risk from large earthquakesAlthough rare, "earthquakes can occur anywhere in Australia," a senior seismologist has warned. So how strong could one get?
Read more »
Millions warned to brace for storms and hail as warmest start to winter is overIt&x27;s been a record-breaking start to winter for many, but now residents in every state and territory have been warned to brace as storms, powerful winds and possible hail are set to hit southern WA before drifting east.
Read more »
Albanese is playing a ‘smart game’ cooling China tensionsPrime Minister Anthony Albanese is playing a “smart game” as part of a large effort to cool tensions with China, says Curtin University’s Professor Joseph Siracusa. Professor Siracusa’s comments come after the Prime Minister gave an address in Singapore on Friday. “The Labor party’s putting the breaks on this war fever and I think it’s a very positive development,” Professor Siracusa told Sky News Australia.
Read more »
The rich and influential cheer squad who backed a war criminalEXCLUSIVE In early November 2017, one of the most influential men in Australia’s military was passed a sensitive document by a billionaire media mogul. It was the start of a campaign.
Read more »
Kylie, Genesis Owusu and David Bridie: Australia’s best new music for JuneEach month our critics pick 20 new songs for our Spotify playlist. Read about 10 of our favourites here – and subscribe on Spotify, which updates with the full list at the start of each month
Read more »