Qantas is embracing artificial intelligence to enhance operational reliability rather than simply to cut costs, says its chief executive, as a range of industries grapple with the impact of technological change.
With operating costs rising across the aviation sector, the national carrier is increasingly looking to AI for efficiency gains central to staying profitable.
Speaking before tech company Atlassian flagged wide-ranging job cuts linked to AI that sent shudders through the industry and the public, Vanessa Hudson stressed the elevation of the technology at Qantas.
“We see so many use cases for AI to deliver better outcomes for customers, particularly in moments where they’re disrupted,” Hudson said.
The strategic shift will be physically marked this week as Qantas cuts the ribbon on a new product innovation centre in Adelaide designed to deliver “intuitive, world-leading digital experiences” for customers.
The technological push comes at a sensitive time for Australian companies as the potential for AI to eliminate once-safe white-collar jobs dawns.
Hudson noted that most of Qantas’ 38,000 staff, including pilots, engineers, and cabin crew, perform roles that cannot be replaced by technology.
“The AI and technology we have been using with those workgroups has improved their effectiveness whether it be with iPads or information that helps them better deliver on-time performance and outcomes to customers.”
She suggested AI will act as a tool to improve and extend productivity rather than a substitute for workers. The view comes as high-level service jobs in banking, marketing and finance have seen core functions automated with new technology.
Hudson said the real-world application of AI in different areas of Qantas’ operations painted a much more mixed picture.
Artificial intelligence is being used in the company’s integrated operations centre to track flight departures and identify flights which need to be more carefully managed, she said. “It has been a key part of contributing to improved on-time performance this year for Qantas.”
Qantas is using an internally developed AI tool to assess the complexity of aircraft turnarounds, the complex process required to ready a plane for a flight.
The AI-driven tool factors in weather, crew transition requirements, and load factors among other variables, which allows the Sydney-based integrated operations centre to pre-empt potential disruptions before they impact the broader flying schedule.
This is being done across Qantas’ domestic network.
In 2025, Qantas achieved an on-time arrival of 77.2 per cent, beating Virgin Australia at 76.0 per cent and Jetstar at 75.2 per cent, according to data from the Bureau of Infrastructure and Transport Research Economics.
While AI’s potential impact has generated concern and excitement, its application varies drastically from task to task. Qantas and Jetstar, for example, in 2024 adopted Airbus’ Skywise Predictive Maintenance tool as a way to “anticipate failures, minimise delays and reduce Aircraft on Ground incidents”.
For Qantas’ ageing fleet, beset by occasional mechanical setbacks, any edge on aircraft maintenance is useful.
At headquarters, Hudson said AI tools were also being used in procurement areas to help Qantas scan contracts and “understand where there’s value being left on the table”.
“None of those examples are reducing headcount,” Hudson said.
Hudson said that in some cases AI would drive efficiency that “has an impact on the mix of our employment”. In the December, the company signalled a number of job cuts at Mascot.
Last month, the Australian Services Union confirmed 30 roles, including freight, crew support, finance and airport services at headquarters, were being eliminated.
Qantas’ elevation of the role of tech in the business isn’t just about efficiency but risk, too. After a cyber-attack purloined Qantas customer data in 2025, Qantas escalated the cyber issue to a board-level topic.
Later, the board reduced short-term incentives for Hudson and the executive team by 15 percentage points, or $250,000 for Hudson.
The Adelaide-based innovation centre, supported by the South Australian government, is projected to house more than 420 tech-related roles over the next three years, drawn from local hires, staff transferred from Sydney and a pipeline of talent. Its partnership with Adelaide University allows recruits to graduate directly into the centre.
In early December, Qantas announced a reshuffle of executives in which Rachel Yangoyan, CEO of QantasLink, would take on the new role of chief technology, AI and transformation officer.
The recruitment of a dedicated chief AI officer who will report to Yangoyan on the implementation and scaling of AI across the organisation remains under way.
“‘Speed to market’ is a really important part of many people’s roles in head office,” said Hudson.
“AI is a tool in addition to automation and digitisation, in addition to the way we work, that will drive efficiency and transformation in our business,” she said.
The rollout of technology will have uneven effects. For an airline, though, the potentially most important technology is new aircraft.
The airline took delivery of six new aircraft in the first half, including the more efficient, longer-range A321XLRs. After years of delay, Qantas is ploughing ahead with the largest refresh of its fleet, ever.
“The one thing that will drive the greatest transformation in our business is getting these new aircraft, without a doubt,” said Hudson.
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Chris Zappone is a senior reporter covering aviation and business. He is former digital foreign editor.Connect via X, Facebook or email.
