Today Australia's flag carrier Qantas announced an underlying profit of AU$2.47 billion ($1.63b) and immediately set about spending it on new aircraft. After much speculation Qantas confirmed it had placed firm orders for Airbus A350 and Boeing 787 aircraft to ultimately replace its fleet of A330 and A380 jets.

Qantas says goodbye to the A330 and A380

The announcement finalizes the Qantas Group fleet renewal program and complements the orders previously placed for Airbus A220 and A320neo Family narrowbodies. With virtually its entire fleet being renewed, Qantas has already launched Project Sunrise and Project Winton, and this latest one will be known as Project Fysh in honor of the airline's co-founder Sir Hudson Fysh.

Photo: G Tipene | Shutterstock

In what he described as "a generational decision for the company," Qantas Group CEO Alan Joyce said the Group had placed firm orders for 12 Airbus A350s and 12 Boeing 787s that will arrive from FY27 (July 2026-June 2027) and into the next decade. This tranche of firm orders is the start of progressively replacing the existing 28 Airbus A330s and also includes additional purchase rights options split evenly between both manufacturers.

Speaking to the media today, Joyce said this is another multi-billion dollar investment in the national carrier, and it's great news for our customers and our people. Joyce went on to say:

"It's in addition to the 149 firm aircraft we still have on order to continue renewing the domestic fleet for Qantas and Jetstar and for the non-stop Project Sunrise flights to London and New York.

"The aircraft will arrive over a decade or more and they'll be part of the fleet for 20 years. They'll unlock new routes and better travel experiences for customers and new jobs and promotions for our people."

The purchase rights option will give Qantas flexibility for future growth and ultimately replace its fleet of ten Airbus A380s with A350s from around FY32 onwards. Qantas uses the A330s on a mix of international and domestic routes, with the majority of them flying to Asia and the United States. The longer-range capabilities of the A350 and 787 mean they can operate throughout the current international network and also open up new routes in the future.

Photo: Ryan Fletcher | Shutterstock.

With the A330 replacement not beginning until 2026/2027, the average age of that fleet will be 21 years, and Qantas said that is in line with its typical replacement profile. In a nod to passenger comfort, the A330s planned to continue flying the longest will undergo a cabin refurbishment from FY25, including next-generation seats in the economy cabins.

Plenty to look forward to as new aircraft take over

Qantas, and Joyce in particular, have copped plenty of bad press about the age of the Qantas fleet, and now almost every aircraft type in the fleet is slated for renewal. To illustrate the depth of what Qantas is doing, the airline outlined the various orders and arrivals driving the change to an extremely young, fuel-efficient fleet.

Photo: Qantas

• The first two QantasLink A220s are expected to arrive by the end of this year to begin replacing aging Boeing 717s.
• The first of seven mid-life A320s for resource business operations and Jetstar Asia recovery are expected by the end of 2023.
• Twenty-two of the Embraer E190s wet-leased from Alliance Airlines will join the Qantas fleet by the end of this year.
• Two more A321P2F freighters will arrive by the end of 2023.
• All 18 of Jetstar's A321LRs will be operating by June 2024, with a further 20 A321LRs and A321XLRs to be delivered by 2029.
• The first of 12 A350-1000ULRs for Project Sunrise are due to arrive in the financial year 2025/2026.

Image: Airbus

Qantas also announced it will secure access to up to 500 million liters of Sustainable Aviation Fuel (SAF) annually starting from 2028. This amount of SAF has the potential to meet up to 90% of the Group's interim SAF target for 2030. The access comes from partnering with Airbus and Boeing on SAF projects in the US and comes on top of its AU$400 million climate fund aimed at developing a SAF industry in Australia.

What do you think about today's fleet renewal announcement? Let us know in the comments.