Qantas Airways (QAN) – Fleet realignment

June 27, 2025

Qantas Airways provides air transportation services in Australia and internationally, through a fleet of aircraft under the Qantas and Jetstar brands. Qantas Airways was founded in 1920 and is based in Mascot.

Qantas Airways will close its loss-making Jetstar Asia business, which operates intra-Asia flights, citing surging costs and fierce competition, and redirect its 13 Airbus A320 aircraft to the Australia and New Zealand networks. The shutdown will cost around $175 million, but the decision will also eliminate the Singapore-based budget carrier’s losses and allow their cycling of $500 million in capital into its fleet renewal program. Note that the shutdown will only affect 16 intra-Asia routes, and will have no impact on Jetstar Airways' international flights from Australia to Asia or the Jetstar Japan business.

Ord Minnett sees Qantas travelling into FY26 in a strong position, supported by falling fuel costs and increased capacity – circa 7% for Jetstar domestic and 8% for the international division – to satisfy growing demand. We maintain our Accumulate recommendation on Qantas, with the outlook much improved after years of brand-damaging court cases and operational issues.

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