Qantas’ strategy review targets much-improved margins

Qantas is optimistic that it can significantly improve profitability margins in the next seven years through 2030. Instrumental for this is the introduction of the new and more efficient aircraft that the airline already has on order. More rightsizing and offering new opportunities are important ingredients of the long-term strategy, Qantas said on Tuesday during its Investor Day. Qantas’ strategy review targets much-improved margins.

The new strategy follows as Qantas recovers strongly from the Covid crisis. For two years, the airline’s international network was almost non-existing, as Australia maintained a strict lockdown policy. The domestic network also operated on a very low level as different states applied different policies.

This is now all in the rearview mirror, although Qantas – like other airlines – sees that there is a lasting effect from the pandemic. Working from home is there to stay, e-commerce has penetrated new markets, while the supply chain

and labor market continue to be under pressure. At the same time, demand for traveling remains high, with that of domestic reaching 118 percent of pre-pandemic levels and that for international 123 percent. The carrier said recently that it will operate at 100 percent capacity in March 2024.