Own Qantas shares? Here's how the ASX 200 airline plans to grow

Qantas shares are in focus this morning as the ASX 200 airline announces some big 10-year growth plans.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published March 3, 2023 12:09 pm AEDT

Qantas Airways Ltd (ASX: QAN) shares are up 0.9% in morning trade on Friday.

The S&P/ASX 200 Index (ASX: XJO) airline stock closed yesterday trading for $6.53 per share. Shares are currently trading for $6.59 apiece.

That's today's price action for you.

Now, here's how Qantas plans to grow its share of the global air travel market.

A pilot stands in an empty passenger cabin smiling with his arms crossed looking excited — Image source: Getty Images

What are the airline's growth plans?

If you own Qantas shares, you'll be helping fund a big growth push in the ASX 200 airline's staffing as post-pandemic travel demand surges.

The company reported it intends to create more than 8,500 new high-skill jobs over the next 10 years. This comes as the airline acquires new aircraft to meet continued expected growth in long-term demand.

The new jobs will include pilots, engineers, cabin crew and airport staff.

All told, Qantas expects to hire more than 30,000 frontline people by 2033, which includes replacing workers who retire or leave for other reasons.

The ASX 200 airline currently employs some 23,500 people and expects that will grow to 32,000 over the next decade.

To help ensure it has enough workers with the needed engineering skills, Qantas announced it will establish the Qantas Group Engineering Academy in Australia. The academy can train as many as 300 engineers a year.

"We order aircraft up to 10 years in advance, so we need to think similarly long-term about the people and skills we need to operate them," Qantas CEO Alan Joyce said.

Joyce added:

In the near term, we're gearing up to meet the growth in all of the markets we serve. We have more aircraft arriving every month, and that means we need more pilots, engineers, cabin crew and others.

Over the next 18 months, we expect to create more than 2,000 new jobs plus replacing natural attrition.

"Wherever you look there is a skills gap, and according to the OECD, Australia has the second highest labour supply shortage," Brendan O'Connor, minster for skills and training, said.

"Australia needs thousands of new workers and engineers to enter the aviation industry to ensure secure jobs and a thriving sector," O'Connor added. "And we welcome this investment by Qantas to help develop these future skills needs."

How have Qantas shares been performing?

As you can see in the chart below, Qantas shares have been flying higher over the past 12 months, up 28%.

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