Qantas Freight gears up for Christmas online shopping boom
Qantas will carry more than 25,000 tonnes of freight in the lead-up to Christmas as the boom in online shopping continues to prop up the national carrier’s post COVID-19 recovery.
The December freight load is up 5 per cent from December last year and about 75 per cent higher than in 2019, the last year before the pandemic.
Freight has been the unsung cash-cow of the aviation industry since COVID-19 grounded passenger travel two years ago. Around the world, airlines make an average of about $1 from each passenger per flight and while the profits from Qantas’ passenger flights continue to exceed that of its freight division, cargo is subject to less volatility and continues to be buoyed by the digitisation of consumer shopping.
Catriona Larritt, the airline’s executive manager for freight, said that in the days leading up to Christmas, Qantas’ 19 domestic freighters and four international freighters would carry 1200 tonnes of cargo – about double the carrier’s daily average amount.
“Our domestic services alone will be move up to 650 tonnes on the busiest nights to help with Santa’s deliveries – equivalent to around 1.3 million iPads.”
Data from Roy Morgan estimates pre-Christmas sales will reach $63.9 billion this year – a 3 per cent increase on 2021.
Qantas Freight generated $1.9 billion in 2022 – up from $971 million in 2019. The airline’s combined international, domestic and regional revenue brought in $5.9 billion in 2022 – well below the $15.6 billion generated in 2019.
The airline expanded a seven-year air cargo partnership with Australia Post in 2019. The $1 billion agreement means 16 of the group’s 19 freighters are dedicated Australia Post aircraft, and post freight is given priority access to the cargo space on Qantas and Jetstar passenger flights. Qantas’ freight division announced last month it was investing in six Airbus A321 aircraft, as well as converting two A330 passenger jets into freighters in light of the increased e-commerce demand.
The airline announced last week that about 50 per cent of flights from Melbourne and Sydney to Perth will be serviced by Qantas’ Airbus A330 wide-body fleet.
The International Air Transport Association, which represents almost 300 of the world’s biggest airlines, said earlier this month air cargo revenues generated $201.4 billion last financial year – more than double the $100.8 billion earned in 2019. The association expects freight revenues to moderate in 2023, with a predicted revenue of $149.4 billion, a $52 billion drop on 2022, due to economic uncertainty and much of the world grappling with recession.
With China’s continued absence from the Asia Pacific market, air cargo demand is by far the region’s largest player.
