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Qantas Launches Ultra-Long Sydney-New York Flights Despite High Fuel Costs

Financial Times Companies •
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Qantas is proceeding with its ultra-long Sydney to New York route despite high jet fuel prices caused by the Iran war. CEO Vanessa Hudson said the new fleet will boost profits by about A$400mn (US$285mn). The airline will launch the service in mid-2028 using specially adapted Airbus A350-1000s with wellness areas for passengers.

The flight complements Qantas's direct Sydney to London flight set to commence in October 2027 as part of 'Project Sunrise', its decade-long ultra-long flight strategy. Qantas has retested its business case and remains confident based on its nonstop Perth-London route, which remains the highest performing route on its network even with high fuel prices. The Iran conflict increased Qantas's fuel bill by A$610mn this year, wiping A$420mn from earnings.

Hudson noted that travelers are choosing routes that avoid the conflict zone, benefiting Qantas. The airline welcomes the return of Gulf competitors once the conflict ends, as lower fuel prices would improve profitability further.