Qantas Airways Limited (ASX: QAN) shares are edging higher on Friday morning.
At the time of writing, the airline operator's shares are up 0.3% to $6.47.
Why is the Qantas share price rising?
Today's gain appears to have been driven by a combination of a rising market and the release of a positive announcement.
In respect to the latter, Qantas has revealed that it will boost its international network with extra flights, more aircraft, and new routes as it restores capacity in line with strong travel demand and the broader recovery of the aviation industry.
According to the release, from late October, the flag carrier airline plans to add around one million seats to its international network over 12 months compared to its current schedule. It notes that this will offer customers more choice to popular destinations across Asia, the United States, and the Pacific.
Underpinning this will be more Qantas aircraft returning to service, new aircraft joining the fleet, and an arrangement with oneworld partner Finnair to operate two Airbus A330 aircraft on two Qantas routes.
In addition, its ongoing wet lease agreement with Alliance Aviation Services Ltd (ASX: AQZ) appears to be supporting this increased capacity. This morning, Alliance revealed that four more aircraft have been leased with extended range capabilities.
All in all, these changes will see group international capacity grow to around 100% of pre-COVID levels by March 2024. This is up from 44% 12 months ago and 84% today.
Management advised that most of the flying announced today will be powered by the 2,400 pilots and cabin crew Qantas has recruited since borders reopened. A further 300 employees will be needed by the end of the year.
Prices to come down
The good news for travellers is that this action is expected to result in lower airfares.
Qantas CEO, Alan Joyce, commented:
While airlines globally are working to restore capacity to meet demand, there is still a mismatch between supply and demand for international flying. But with more of our aircraft back in the air, new 787s joining our fleet and our contract with Finnair, we've got more seats for our customers and more opportunity for Qantas crew as we increase our own flying. We know our customers are looking for great value and this additional capacity will also put downward pressure on fares.
