The airline’s balance sheet has plenty of room to gear up for new planes landing over the next decade.
Qantas chairman Richard Goyder standing aside would not fix the airline’s issues and investors should welcome new chief executive Vanessa Hudson’s focus on customers, analysts say, with 185 new planes set to be delivered over the next decade.was welcomed after the carrier cut back too much spending over recent years.
Ms Hudson’s pledge to spend more on customers and absorb higher fuel costs – rather than pass them through as higher fares – would help turn the airline around, analysts said.“They had to really tighten everything through the pandemic. But arguably they have underinvested for a while. A lot of the negativity really boils down to two points: cost and service,” Mr Hewitt said.
JPMorgan analyst Anthony Longo said the revised spending, alongside higher fuel costs, would crimp financial year 2024 earnings by 4 per cent. He said negativity around the Senate inquiry, its dispute with Qatar Airways, Sydney Airport landing slotshad dragged Qantas shares down by more than 16 per cent over the past month, weighing on otherwise strong earnings.
Qantas confirmed it has firm orders for 185 planes over the next 10 years, but said it has flexibility to stagger the timing if conditions deteriorate. One analyst, who did not wish to be named, said Qantas has added 45 new planes to its delivery schedule since August last year.
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