‘A way of saying thank you’: Qantas’ surprise $100m move

Australia’s largest airline has made a surprising $100m announcement after a difficult year.

After a year marred by aircraft and personnel issues, Qantas has made a multimillion-dollar bid to start the new year on a positive note.

Australia’s largest airline has announced it will spend $100m to transform its signature airport lounge networks both domestically and internationally.

The crowning jewel will be a new first-class lounge in London’s Heathrow Airport that will be opened in line with the airline’s direct flights from the east coast of Australia to the UK.

Qantas will spend $100m on upgrading its lounge network. Picture: NCA NewsWire / Ian Currie

The new luxury lounge is expected to open in the latter half of 2025, subject to regulatory approval from one of the world’s busiest airports.

It will be the fifth first-class lounge operated by Qantas, joining the ranks of Los Angeles, Singapore, Melbourne and Sydney.

Qantas chief executive Alan Joyce noted it was the largest investment in the airline’s lounge network in more than 10 years.

“Being back in profit means we’re back to making long-term investments for our customers,” Mr Joyce said.

“That started with the major aircraft order we announced last year and now we’re building on that with a major investment in our lounges.”

Recent forecasts reveal Qantas expects to deliver a pre-tax profit of more than $1.35bn for the first half of the financial year as demand for travel soars.

Qantas chief executive Alan Joyce said the network overhaul would be enacted over three years. Picture: NCA NewsWire / Damian Shaw

Mr Joyce said the $100m expenditure was “a way of saying thank you” to the “millions” of loyal customers who visited Qantas lounges each year.

The Hong Kong International Lounge will also receive an upgrade before it reopens in April this year with its signature yum-cha trolley.

Domestically, many major airport lounges will be refurbished to increase capacity.

Under the proposal, both Sydney and Melbourne international business lounges will be redeveloped to accommodate future travel growth and offer signature food and beverage offerings.

Hobart Qantas Club will relocate to a new venue in order to host up to 150 travellers, while Broome will receive a new regional lounge that will open in 2024 for 100 guests.

Mr Joyce said the network upgrade would be complete by 2025.

Qantas lounges across the world will benefit from the $100m investment. Picture: NewsWire / Sarah Marshall

Lounges are accessible to Qantas customers who have frequent flyer status of gold or above or are flying in business or first class.

The multimillion-dollar announcement comes after a turbulent year for the Australian airline, including controversies surrounding sacked staff, flight cancellations, and a perceived fall in standards.

Last month, Qantas aircraft experienced three emergencies in just a few short weeks, sparking safety concerns.