Qantas (OTC:QUBSF) announced that it is testing long-haul, nonstop passenger flights from New York and London to Sydney.
In addition to its fiscal year 2019 earnings report, the company announced that it has embarked on a program dubbed "Project Sunrise" designed to study the health and well-being impacts on passengers and crew during long-distance flights.
The airline has a goal of operating regular, nonstop commercial flights from the east coast of Australia (Brisbane, Sydney and Melbourne) to New York and London, which would require a commercial plane to travel approximately 19 hours nonstop.
Scientists will be onboard to evaluate the health of the up to 40-person (including crew) test flights and gather in-flight data. Researchers will monitor changes in the pilots' melatonin levels and brain wave patterns to test alertness. The 40-person maximum, along with luggage and catering restrictions, is done to minimize weight and increase the aircraft's range.
Qantas Group Chief Executive Officer Alan Joyce said, "Ultra-long-haul flying presents a lot of common-sense questions about the comfort and well-being of passengers and crew. These flights are going to provide invaluable data to help answer them. For customers, the key will be minimizing jet lag and creating an environment where they are looking forward to a restful, enjoyable flight. For crew, it's about using scientific research to determine the best opportunities to promote alertness when they are on duty and maximize rest during their downtime on these flights."
The program will test three flights from October to December using repurposed Boeing Co (NYSE:BA) 787-9s.
The flights will reposition from Boeing's factory in Seattle to New York and London for the journey back to Sydney in lieu of flying deadhead from Seattle to Australia.
Air cargo opportunity
Jesse Cohen, FreightWaves' air cargo market expert, believes that there is upside for this route in the cargo space as well. "Australia is a large market for air cargo given the long distances and sailing times to and from, Europe and North America in particular. There are large, established air cargo flows between Sydney and points like New York and London that are currently connecting or making stops along the way. Time savings is a key selling point for a lot of air cargo, and some would undoubtedly pay a nice premium for nonstop Sydney-New York and Sydney-London service," said Cohen.
But Cohen cautions that the long-range flights may have minimum payload space for cargo.
The Project Sunrise flight from New York to Sydney will be the first direct commercial flight on that route. The London-to-Sydney flight has been flown once before — by Qantas in 1989.
Qantas said it has had talks with both Airbus (Euronext: AIR.FP) and Boeing about aircraft capable of providing a "viable commercial payload" for the 19-hour voyage. The company will use the Project Sunrise test findings along with anticipated economics from the routes to make a final decision, which is expected by year-end.
"There's plenty of enthusiasm for Sunrise, but it's not a foregone conclusion. This is ultimately a business decision and the economics have to stack up," Joyce concluded.
Financial results
The Australian-based airline made mention of this program in its full-year fiscal 2019 earnings report in which it reported a 5% increase in revenue to AU$18 billion (one Australian dollar is equal to $0.68 in U.S. dollars). Underlying profit before tax declined 17% to AU$1.3 billion compared to the company's record fiscal year 2018. The press release called out increased fuel expense and unfavorable foreign exchange rates as headwinds.
The company sees price weakness domestically, but has a positive outlook internationally for fiscal year 2020.
Image Sourced from Pixabay
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
