Qantas expands freight fleet to keep up with huge appetite for online shopping

Enormous appetite for online shopping prompts Qantas to expand freight capacity with another six converted passenger planes.

Demand for freight capacity has become so great, Qantas is converting two of its wide body A330s to freighters.

Qantas is preparing to add six freighter planes to its fleet to keep up with the demand for next day deliveries from online shoppers.

The six A321s can each carry 23 tonnes of cargo, nine tonnes more than the five Boeing 737 freighters they will replace from 2024 onwards.

To be sourced on the open market, the second hand A321s will be converted from passenger planes to freighters, by removing seats and installing cargo-handling.

The airline already has three A321s in its freight fleet, and is also converting two wide-body A330s to freighters such is the demand for next-day deliveries.

Qantas CEO Alan Joyce said the group’s freight division had been one of the standout performers during the pandemic as Australians rapidly shifted to online shopping.

“While some of that shift is temporary, demand remains well above pre-pandemic levels even with the lifting of almost all Covid-related restrictions,” Mr Joyce said.

“This is one of the largest ever investments in our domestic freight fleet that will enable Qantas Freight to capture more of that demand and will provide the opportunity to help freight further grow revenue and earnings.”

As well as parcels, the freighters carried mail, medical supplies and in some instances perishables, but quantities were relatively small compared to the volume of online shopping goods.

In the first half of the 2022 financial year, Qantas Freight had a record performance, due to increased demand for e-commerce, and higher international prices driven by supply chain disruption.

As well as carrying more cargo, the A321s are around 30 per cent more fuel efficient than the 737s for every tonne of freight carried.

Brand new A321s cost more than $120m each but can be bought second hand for around $50 million.

The announcement by Qantas came days after the airline signed a new enterprise agreement with its 100 freight pilots, inclusive of a two-year wage freeze (dating back to 2020) and 2 per cent annual pay rises from this year.

The agreement meant the pilots were eligible for a $5000 bonus payment, and 1000 share rights worth approximately $4500.

Qantas also reached agreement with its 650 aircraft maintenance engineers (AMES), separate to licensed aircraft engineers (LAMEs) who have voted to take industrial action as they pursue a 12 per cent pay rise.

Qantas Engineering executive manager Scott McConnell said the deal with the AMES would bring certainty for them and the business.

“We have now reached agreements with around 5000 of our employees, including some of our pilots and cabin crew, that are in line with our current wages policy,” Mr McConnell said.

The licensed aircraft maintenance engineers were initially planning to stage one-minute stoppages while union officials negotiated with Qantas management.

LAMEs with Jetstar and the Qantas-owned Network Aviation in Western Australia were also pursuing industrial action in their campaign for pay rises that were more in step with the rate of inflation.