Qantas Faces Looming Funding Crunch to Renew Fleet, S&P Says
- Fleet renewal a ‘big task’ that needs attention now: S&P
- Australian carrier plans to start direct Europe flights soon
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After delaying spending on its fleet for too long during a turnaround program, Qantas Airways Ltd. faces a possible funding squeeze when it’s time to buy new planes, according to S&P Global Ratings.
The Australian flag carrier needs to increase investment in its aging fleet of 309 planes before the sum required is too large to handle, S&P said in a report released Thursday. Shareholder returns may have to be reduced to pay for fleet renewal, the ratings company said.