Buying Qantas shares? Meet your new aircraft!

Qantas fleet renewal program just took off.

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Key points

  • Qantas shares are slightly down today, trading at $10.88, amid a broader ASX 200 decline.
  • The airline's fleet renewal plan, highlighted by new A321XLR deliveries and ongoing aircraft orders, aims to enhance performance and efficiency.
  • CEO Vanessa Hudson emphasises fleet upgrades as a key strategy for improving travel experiences and meeting environmental goals, with further fleet expansions expected.

Qantas Airways Ltd (ASX: QAN) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed yesterday trading for $10.90. In morning trade on Friday, shares are changing hands for $10.88 apiece, down 0.2%.

For some context, the ASX 200 is down 0.3% at this same time.

That's the latest Qantas share price action.

Now, here's what's happening with the company's fleet renewal plans.

Qantas shares encompass new airplanes

Following its FY 2025 results release in August, Qantas shares closed the day up 9.1%.

Atop announcing a 15% year-on-year increase in underlying profit before tax to $2.39 billion, forward-looking investors look to have bought into the stock with an eye on the company's fleet renewal program.

In FY 2025, Qantas said 17 new aircraft were delivered, with the airline saying it had placed orders for 20 additional A321XLR aircraft, 16 with lie-flat business seats, for FY 2026.

Yesterday, this proved out, with Qantas reporting that its first two next-generation Airbus A321XLR aircraft took off for their maiden commercial flights. The two planes commenced their inaugural commercial services between Sydney and Melbourne and Sydney and Perth, respectively.

Although Qantas shares closed down 0.8% on Thursday, the new aircraft could offer a boost to the stock's performance over time.

According to the airline:

The A321XLR features a wider and longer cabin than previous generation narrowbody aircraft, with wider seats, higher ceilings, larger windows, fast and free Wi-Fi and space for around 60% more bags than Qantas' Boeing 737s. The A321XLR use less fuel per seat than the 737 it replaces, enabling a reduction in carbon emissions.

What did management say?

Commenting on the new aircraft and their potential to support Qantas shares over the long haul, CEO Vanessa Hudson said the A321XLR aircraft represented "a significant milestone" in the company's fleet renewal program.

"Investing in next generation aircraft is the most significant way we can elevate the travel experience for our customers and our people," she said. "We have already seen a significant improvement in customer satisfaction on our new A220s and Jetstar's new aircraft."

Hudson added:

The extended flight range enables us to operate these aircraft on both domestic and short haul international routes, including destinations across South East Asia that are not viable with our current narrowbody fleet…

We look forward to introducing our A321XLRs on other domestic and international routes as more aircraft join our fleet.

Qantas expects its third new aircraft to arrive in November, saying the fleet will grow to seven by next June.

How have Qantas shares been tracking?

Qantas shares have flown well ahead of the benchmark this past year.

With today's intraday slip factored in, shares in the ASX 200 airline stock remain up 45.5% since this time last year, not including dividends.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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