Qantas unveils $100 million lounge network upgrade
Qantas will invest $100 million to transform a number of its international and domestic lounges in the single biggest lounge network upgrade over chief executive Alan Joyce’s 14-year tenure.
The country’s biggest carrier will create four new lounges, including a first lounge at London’s Heathrow Airport, and undertake a revamp of existing lounges including the international business lounges at Hong Kong, Sydney and Melbourne.
Chief executive Alan Joyce said the carrier’s quick return to profit, announced in October, had enabled the investment.
“Being back in profit means we’re back to making long-term investments for our customers. 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.”
The opening date of the new first lounge in London will be timed with the first direct London to Sydney flight, a long-term project known as “Project Sunrise”. Qantas hopes the new first lounge will provide direct access to boarding gates and full airfield views, subject to UK regulatory approval and agreement with Heathrow Airport.
The airline will also reopen its Hong Kong international lounge, and it’s yum cha trolley, that was shut down during the onset of the COVID-19 pandemic.
It’s also planning to relocate the Hobart Qantas Club to double capacity from 96 to about 150 seats. This will be timed with the redevelopment of the terminal at Hobart Airport.
Qantas will also construct a new regional lounge at Broome to open in 2024 to double capacity from 49 to 100 seats.
Joyce said the network upgrade will be completed by 2025, with three of the lounges due to open this year.
The announcement was made just two days ahead of what’s expected to be a bullish half-yearly result update from the carrier, which has benefited from the continued demand for air travel. The December half was dominated by high fares-which reached records not seen since 2007 at the end of last year- high-fuel prices, and the return of some international competitors.
Qantas shocked the market in October when it predicted a return to profit by the end of June 2023. Its shares surged to by 12 per cent following that announcement. The airline then lifted its profits forecast for the December half to between $1.35 billion and $1.45 billion in underlying profit before tax, up $150 million its previous October guidance.
The airline has previously committed to creating a new international lounge at Auckland, a new business lounge at Adelaide domestic airport, an upgrade to the chairman’s and Qantas Club lounges at Adelaide domestic, a new regional lounge at Rockhampton Airport and a redevelopment of Port headland’s regional lounge.
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