Qantas Airways Ltd (ASX: QAN) shares are flying in the green today.
Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed flat yesterday, trading for $6.06. In morning trade on Tuesday, shares are swapping hands for $6.08, up 0.3%.
For some context, the ASX 200 is up 0.8% at this same time.
Now, here's how Qantas aims to improve its regional network.
ASX 200 airline spreading its regional wings
Qantas shares are marching higher today after the company reported it is investing in 14 new DeHavilland Dash 8 turboprop aircraft (Q400) for its regional QantasLink routes.
Qantas said that 19 of its smaller Q200 and Q300 turboprop aircraft will gradually be phased out of its regional fleet.
The first new Q400 is scheduled to take to the air by the end of calendar year 2024.
Regional passengers will be pleased to find the new planes are 30% faster than the Q200 and Q300 aircraft they'll eventually replace.
This investment will bring the number of Q400 aircraft in the fleet to 45.
Among the potential benefits for Qantas shares, management said the new Q400 aircraft will help improve operational reliability. And the consolidation of three sub-fleets into a single fleet of turboprops is expected to lower maintenance and operating costs for QantasLink.
Once the fleet changes are completed, there will be no material change to QantasLink's overall turboprop capacity.
What did management say?
Commenting on the new investments that could help support Qantas shares longer-term, CEO Vanessa Hudson said, "As the national carrier, we are proud of the role we have played for more than 100 years keeping regional communities connected, and this investment ensures there will be ongoing reliable air services across many parts of regional Australia."
Hudson added:
QantasLink turboprops carry more than 3.5 million customers to more than 50 destinations around regional Australia every year, and these next-generation aircraft allow us to improve the travel experience with a faster and more comfortable experience…
We know sustainable travel is important for our customers. These additional Q400s allow us to provide certainty to the regions over the next decade while we work with aircraft manufacturers and other suppliers on electric or battery powered aircraft that are the right size and range for our network.
Qantas regional turboprop aircraft investment comes as the ASX 200 airline progresses with its broader jet fleet renewal program. QantasLink's third Airbus A220 aircraft is expected to be delivered in the next few weeks.
How have Qantas shares been tracking?
A strong run higher commencing in early March sees Qantas shares up 13% in 2024. Shares are up 1% over the past 12 months.
