Qantas announces new direct Auckland-New York flights in challenge to Air NZ

Qantas plans to challenge Air New Zealand directly on the Auckland-New York route, recovering from three years of huge losses.

The airline lost more than
NZ$1 billion, blaming Delta, Omicron and the high cost of restarting after lockdown for its woes.

But Qantas has also announced that it will start a new Auckland-New York route on its 787 Dreamliner in June next year.

Sydney-Auckland-New York flights go on sale today.

The long journey from New Zealand’s largest city to New York takes about 16 and a half hours.

And because of the jet stream in the northern hemisphere, the return flight takes about 17 and a half hours.

Qantas chief executive Alan Joyce said feedback from the flyers suggested the Dreamliner’s cabin was suitable for long-haul international flights.

Joyce has lashed out at Qantas rivals, saying the Australian company’s Dreamliner has more space and fewer seats than most rivals.

“We think this route will be very popular with Australians because of the opportunity to connect through Auckland and it also gives Kiwis more options,” Joyce said.

“We can’t wait to get back to New York thanks to the delivery of new planes that have affected many airlines with delays,” he added.

Qantas said it would also expand trans-Tasman flights.

Currently, Qantas operates six daily flights from Auckland to the three largest cities on the east coast.

But from June next year, there will be 11 daily flights from Auckland to Sydney, Melbourne and Brisbane.

Qantas has also committed to a comprehensive upgrade to its Auckland lounges.

The airline has had a dismal year but said it is poised to bounce back as lockdowns and major Covid-19 outbreaks are a thing of the past.

“With the existential crisis brought on by the pandemic now over, the group is focused on addressing the current operational challenges.”

The company said it is improving its competitiveness in call center wait times, cancellation rates and mishandled bags.

All of these performance indicators are back to levels comparable to pre-Covid levels, it said.

In the past week, Qantas has sought to regain favor after a flurry of complaints by offering frequent flyers a $50 travel credit.

The company today reported an underlying loss before tax of A1.86b ($2.08b) and a statutory loss before tax of A$1.19b.

With underlying ebitda of A$281 million, Qantas said net debt fell to A$394 million, below the target range.

The airline has also pledged to significantly boost employee travel benefits.

Mark Lister, head of private wealth at Craigs Investment Partners, said the Qantas New York flight announcement should be good news for travelers.

“There’s nothing wrong with healthy competition. It does tell you that both companies see it as an opportunity and it’s a smart move for Air New Zealand.”

Air New Zealand’s Auckland-New York non-stop flight will begin on September 17.

The airline had hoped that ultra-long-haul services would begin in 2020, but the pandemic thwarted those plans.

Air New Zealand chairman Mrs Tyrese Walsh said today the airline was preparing to fly direct to JFK.

The airline is also finalizing the design of the cabin experience on its new Boeing 787 Dreamliner, Walsh said.

Air New Zealand posted a net loss of NZ$591 million for the year to June 30.

The airline blamed soaring labour and fuel costs and the stifling impact of the lockdown on flights for its losses, even as revenue rose to $2.734b from $2.517b.