Qantas hints at more demand for direct overseas routes in 2022

Following a staggering financial loss, Qantas has hinted at how Australians will fly overseas when international borders open.

Qantas boss Alan Joyce says overseas travel is still on the cards for 2021, highlighting certain routes as taking priority when international borders reopen.

Speaking at the Group’s 2021 yearly financial results on Thursday, Mr Joyce announced a staggering $2.3 billion loss before tax, as border closures and travel restrictions continued to wreak havoc on the aviation industry. But despite the hit, Mr Joyce said the airline was on track to bring back overseas travel.

Under the plan outlined today, destinations with high vaccination rates and low Covid risk, such as the UK, North America and parts of Asia, would be Qantas’ first priority for international travel, with current projections for mid-December 2021 “in reach”.

Qantas says they will be reopening to certain overseas routes first. Picture: Sonny Tumbelaka/AFP

However, flights to riskier destinations with low levels of vaccination, such as Bali, Phuket, Bangkok, Manila, Ho Chi Minh City and Johannesburg, will be pushed out to at least April 2022.

Mr Joyce said that while “it’s obviously up to government exactly how and when our international borders re-open”, the target of Australia meeting the 80 per cent vaccination trigger agreed by national cabinet should be reached by the end of the year.

Qantas has hinted at moving the direct Perth to London route to Darwin. Picture David Clark

Mr Joyce however said he thinks customers will have different demands when our international borders reopen, and that direct routes – such as Sydney to New York, or Perth to London – will become more desirable rather than booking a flight that includes a stopover.

Having serviced more than 320 repatriation flights throughout the course of the pandemic, with Darwin being the base of those return travelled from London, Paris and Germany, Mr Joyce said this may be a new base for future direct routes.

Qantas have announced the first few overseas routes that will return first. Picture: Mark Stewart

“We have got some good operational capability flying from Darwin to London, to Paris and to Germany,” he said.

“Given the conservative nature of Western Australia, we hope for the best but we have to plan for the worst. So with the only option to operate local flights via Darwin, we think we are very capable of doing that. We will have a look if that’s a long term position or short term.

“We think there will be significant demand [to fly to London direct] which people will love … I think there will be a huge demand for Heathrow over Christmas.

Mr Joyce said Project Sunrise – being non-stop flights from Sydney to London and New York, is still on the cards for the airline.

Qantas CEO Alan Joyce believes there will be a strong demand for direct routes into the UK and the US. Picture: NCA NewsWire/Bianca De Marchi

“We are of the belief there will be strong demand for people flying directly into the UK and east coast of the United States post-Covid,” Mr Joyce said.

What we have always said is that we will come back to this [Project Sunrise] when we see the light on international borders opening up … and we continue to look at the options of when we could do that … but we need to see international borders open first before we revisit it.”

Qantas will bring back some of their A380S before schedule. Picture: Mark Evans/Getty Images

In response to opening first to places like the UK, Singapore and the US, Mr Joyce said the airline intends to bring five A380s back into service about a year ahead of schedule – from mid-2022 onwards – to fly to the UK and US.

“These were key markets for Qantas before Covid and given how well they have recovered, we expect travel demand on these routes to be strong enough for the A380,” Mr Joyce said.

We have the flexibility to bring back the other five A380s by early 2024, depending on how quickly the market recovers.”