Qantas to benefit from online shoppers

Australian carrier Qantas is hoping to capitalise on growing levels of e-commerce after extending its International air freight contract with Australia Post.
The agreement currently sees Qantas Freight handle 12,000 tonnes of mail and parcels out of Australia each year.

This deal and a recently signed domestic freight agreement are worth more than $A500 million to the airline over five years and form Australia’s biggest air freight contract.

Although the volume of letters being sent by Australia Post has plummeted with the spread of electronic communications, the number of parcels has been rising to become an increasing proportion of the postal service’s business.  Letter volumes fell almost 10 per cent in 2016 – the biggest 12-month decline on record – while strong growth in online deliveries saw parcel profits rise 8 per cent to $A314 million.

The new deal gives Australia Post access to the Qantas Group’s more than 1500 international weekly flights and interline agreements with other carriers ensure global access.

“We have a well-established relationship with the Australia Post Group and the growing international parcel business makes this a substantial contract to secure,” said Qantas International and freight chief executive Gareth Evans.

“We have transformed Qantas Freight to deliver flexible and efficient operations for the changing needs of our customers.

“This partnership sees the Australia Post Group and Qantas Freight well-positioned to support the e-commerce industry, which relies on air freight for express delivery of its steadily increasing volumes of international packages and parcels.’’

Qantas Freight was the airline’s only major business unit not to record a record profit last financial year, with earnings down 44 percent to $A64m.