Qantas Orders 20 More A321XLRs Amid Strong FY25 Profit Rise

(AUSTRALIA) Qantas will add 20 more Airbus A321XLR jets to its fleet plan, lifting its total A321XLR commitments to 48 aircraft and underscoring a sharp turnaround in the group’s FY25 results. The order, confirmed on 28 August 2025, follows a year in which Qantas posted a 28% jump in profit after tax to AU$1.61 billion, an 8.6% rise in revenue to AU$23.8 billion, and underlying profit before tax of AU$2.39 billion.

The airline says the new long‑range narrowbodies will speed retirement of its Boeing 737s, open new point‑to‑point routes, and improve comfort for customers on busy domestic and near‑international sectors.

Key executive comments and product features

Chief Executive Vanessa Hudson said the additional A321XLRs would enable Qantas to reach city pairs not feasible with the current narrowbody fleet and bring a premium cabin experience to shorter flights.

“These additional A321XLRs will accelerate the retirement of our 737 fleet and open up new opportunities for domestic and international travel, allowing us to reach destinations that aren’t possible with our current narrowbody fleet,” Hudson said.

She added that lie‑flat Business seats, seat‑back screens, and fast, free Wi‑Fi would create a consistent premium feel for customers booking Qantas domestic services and then connecting onto long‑haul flights.

Delivery timeline and fleet scale

• Qantas has already taken delivery of its first two A321XLRs, arriving in June and August 2025.
• Entry into commercial service is slated for mid‑September 2025.
• The 20 newly ordered aircraft will begin arriving in 2028.
• In total, the Qantas Group now has 214 aircraft on order across multiple programs — its largest fleet renewal on record.
• Of the 20 additional A321XLRs, 16 will feature lie‑flat Business seats, a first for Qantas narrowbodies.

Fleet plan and routes

The Airbus A321XLR has a range of up to 8,700 km, more than 3,000 km beyond the Boeing 737s it will replace. The extra reach allows:

• Longer domestic legs without stepping up to a widebody.
• New short‑haul international links (Southeast Asia, Pacific Islands).
• Potential longer thin routes such as Perth–India and Adelaide–Singapore as the program matures.

Initial A321XLR flying will include Sydney–Melbourne and Sydney–Perth, with a step‑by‑step rollout to other domestic routes and nearby international markets.

Cabin and environmental features

• Lie‑flat Business seats on many aircraft (16 of the new deliveries).
• Seat‑back entertainment across the fleet.
• Fast, free Wi‑Fi for customers on narrowbody services.
• Fuel and emissions gains: the aircraft can operate on up to 50% Sustainable Aviation Fuel (SAF) today, with Airbus targeting 100% SAF capability by 2030.

These features support more direct flying and reduced emissions related to connections and additional takeoffs/landings.

Group impacts and Jetstar rollout

• Low‑cost arm Jetstar will take its first A321XLRs from 2027, configured with two classes for international services.
• Jetstar’s A321XLRs are intended to deepen the group’s presence on routes where customers want direct flights at lower fares.
• The A321XLR arrivals will accelerate the retirement of Qantas’ 737 fleet, affecting schedules, crew training, and maintenance planning over several years.

Financial performance and shareholder returns (FY25)

Qantas’ FY25 results underpinned the new order and allowed cash returns to shareholders:

• Profit after tax: AU$1.61 billion (up 28%)
• Underlying profit before tax: AU$2.39 billion (up 15%)
• Revenue: AU$23.8 billion (up 8.6%)
• Net debt: AU$5.0 billion (within target range)

Dividends declared:
– Final dividend: AU$250 million (16.5 cents per share)
– Special dividend: AU$150 million (9.9 cents per share)
– Both dividends payable on 15 October 2025

Operational highlights:
– 17 aircraft delivered in FY25, including the first A321XLR and five A220s for QantasLink.
– Jetstar Asia’s closure led to redeployment of 13 A320s across the group.
– Jetstar reported a record 16 million domestic passengers in FY25.

Forward fleet roadmap (summary)

1. Mid‑September 2025: First two A321XLRs enter commercial service.
2. By June 2026: Seven A321XLRs in service with Qantas.
3. From 2027: Jetstar’s first A321XLRs arrive (two‑class layout).
4. From 2028: The 20 newly ordered A321XLRs begin arriving.
5. October 2025: First A350‑1000ULR enters final assembly.
6. First half of 2027: Project Sunrise inaugural ultra‑long‑haul flights to Europe and the United States.

Strategic rationale and industry perspective

• Analysts say the A321XLR’s range and cost profile could reshape dense domestic corridors and regional international sectors.
• Moving flights to modern narrowbodies with lie‑flat Business seats lets Qantas offer a premium product without widebody overhead on routes that are too thin for twin‑aisles.
• Lower fuel burn and SAF capability support environmental goals while helping control operating costs.

For time‑poor travelers, more direct links reduce hub reliance and long layovers. For regional cities, new nonstop services can materially change travel patterns for work, education, and family visits.

Travel impact, visas, and customer experience

More nonstop options mean shorter travel days and fewer missed connections. However, travelers must still meet entry rules and obtain the appropriate visa before travel.

• For tourism, a common option is the Department of Home Affairs visitor visa (subclass 600): https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/visitor-600
• Business travelers, students, and temporary workers should choose the visa matching their travel purpose and length of stay.

Customer experience improvements:
– Lie‑flat Business on narrowbodies for better rest and productivity on key domestic routes (e.g., Sydney–Perth).
– Seat‑back entertainment and free Wi‑Fi for economy passengers, aiding families and business travelers.

Workforce and airport implications

• Qantas will continue hiring and training pilots, cabin crew, and engineers to support the expanding fleet.
• Training programs will scale up for A321XLR and upcoming A350‑1000ULR operations.
• More point‑to‑point flying could spread activity across terminals, changing shift patterns and ground handling needs.

Wider community and economic effects

• Improved air links can boost tourism, support small business trade, and make family visits easier.
• For migrants and international students, new nonstop routes reduce travel time to home countries.
• For tourists, a premium narrowbody cabin paired with long‑haul connectivity can improve the overall travel experience.

Final outlook

Qantas is betting that customers will pay for comfort and time savings, and that a newer, more efficient narrowbody can deliver both on domestic lanes and short‑haul international routes. If delivery timelines hold — 48 A321XLRs ordered, with 214 total aircraft in the pipeline — the group will be operating one of the region’s youngest, most capable narrowbody fleets before the decade ends.