The Qantas Airways Limited (ASX: QAN) share price is outperforming on Monday amid news the airline has invested in six new aircraft. The Airbus A321 aircraft will be put to use in the airline's freight division, replacing five ageing Boeing 737 freighters.
On top of that, Qantas revealed its freight business put on a record performance in the second half, driven by e-commerce demand, higher international yields, and reduced capacity on passenger flights. It will elaborate further when it releases its full-year results next Thursday.
The Qantas share price is trading at $4.73 at the time of writing, 1.07% higher than its previous close. For context, the S&P/ASX 200 Index (ASX: XJO) has lifted 0.58% so far today.
Let's take a closer look at today's news from the flying kangaroo.
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Qantas share price lifts amid news for freight division
The Qantas share price is in the air today. Meanwhile, the airline has announced its latest move to modernise its fleet.
Six new A321 freighters are expected to begin flying Qantas' freight routes between 2024 and mid-2026.
Each aircraft can carry 23 tonnes of cargo – 64% more than the currently utilised Boeing aircraft. They are also around 30% more fuel efficient per tonne of freight carried.
Qantas already has three of the Airbuses. Snapping up the six new planes will simplify Qantas Freight's fleet and bring about additional efficiencies in training and maintenance.
Qantas CEO Alan Joyce commented on today's news, saying:
Qantas Freight has been one of the standout performers for the group during the pandemic as Australians rapidly shifted to online shopping. While some of that shift is temporary, demand remains well-above pre-pandemic levels even with the lifting of almost all COVID-related restrictions.
This is one of the largest ever investments in our domestic freight fleet, that will enable Qantas Freight to capture more of that demand and will provide the opportunity to help Freight further grow revenue and earnings.
The Qantas share price is performing relatively in line with the broader market this year, falling 5.6% year to date. Meanwhile, the ASX 200 has slipped 5%.
