Qantas expanding Australia freight fleet to meet online shopping demand

An plane look crew member cleans an plane as Qantas begins making ready and equipping planes for the return of worldwide flights, in anticipation of Australia easing coronavirus illness (COVID-19) border laws, at Sydney Airport in Sydney, Australia, October 21, 2021. REUTERS/Loren Elliott

SYDNEY, Aug 15 (Reuters) – Australia’s Qantas Airways (QAN.AX) mentioned on Monday it could add six Airbus SE (AIR.PA) A321 transformed freighters to its home fleet to exchange 5 ageing Boeing Co (BA.N) 737s and broaden capability to satisfy a surge in demand from on-line buying.

The A321 freighters shall be sourced from the open market and transformed from carrying passengers to cargo topic to business negotiations, the airline mentioned, including the planes have been anticipated to reach between early 2024 and mid-2026.

The freighters will be part of one other three A321s already within the airline’s home cargo fleet and broaden carrying capability given the A321s can carry 23 tonnes of cargo, 9 tonnes greater than the 737s.

Qantas Chief Government Alan Joyce mentioned the airline’s freight division, which reported report first-half earnings, was one of many group’s stand out performers throughout the pandemic as Australians shifted to on-line buying.

“Whereas a few of that shift is momentary, demand stays well-above pre-pandemic ranges even with the lifting of just about all COVID-related restrictions,” he mentioned in a press release.

Singapore Applied sciences Engineering Ltd (STEG.SI), a significant converter of A321 passenger planes to freighters, mentioned final week that conversion demand remained robust, with orders for the mannequin booked via 2025.

The scarcity of passenger airplane cargo-carrying capability throughout the pandemic despatched freight charges hovering, delayed retirements of older fashions like MD-11s and had lessors dashing to transform older undesirable passenger planes into carrying freight. learn extra

Nonetheless, the robust cargo demand that helped passenger-deprived airways keep afloat throughout the pandemic is displaying indicators of softening amid rising financial uncertainty, partially, fuelled by excessive inflation. learn extra

Reporting by Jamie Freed; Enhancing by Himani Sarkar and Muralikumar Anantharaman

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