The Impact of Macro Environmental Factors on Qantas Airways/company's success

This report aims to provide an in-depth macro environment analysis of Qantas Airways Limited, which is a leading multinational airline group based in Australia. It is the largest player in the Australian Airline industry, where the industry is highly competitive and its revenue is 70% earned from the top four domestic companies. Where, the two main companies Qantas and Virgin account for 80% of the industry revenue (IBIS, 2024). Thus, this report aims to utilize the PESTEL framework to examine the macro environment of Qantas and how political, economic, socio-cultural, technological, environmental, and legal factors are influencing Qantas' operations, domestically and globally. The report also aims to assess the impact of these factors on the company’s future sustainability and competitive positioning.

1. Strategic context of the organization

Qantas Airways Limited was founded in Queensland in 1920, and is the largest and oldest airline of Australia. It offers full service and premium service and has both domestic and international flight networks across more than 50 destinations, in the country (Qantas, 2024; Raynes, & Tsui, 2019). It is the largest airline in terms of f fleet size, international flights and international destinations, in Australia. It has a strong market presence, with a 61% domestic market share and 15$ international market share (Zhao, & Chen, 2024).

 According to (Statista, 2024) in the year 2023, Qantas reported a revenue of AUD 19.82 billion, and shows a significant increase from previous years (Figure-Appendix). Additionally, Goldman Sachs is expecting that the revenue of Qantas will grow to $22,131.1 million in FY 2024, which will be up 11.7%, every year (Mickleboro, 2024).

The airline employed approximately 29,000 people in 2019, which is 23500, now and is expected to grow to 32000 by 2033 (Thorn, 2023). Also, the company has been actively involved in efforts to reduce its environmental impact and has active strategies aiming to achieve net-zero carbon emissions by 2050 (Moo et al. 2022). Also, Qantas is known for its commitment to safety, operational excellence, and innovation, and has positioned itself as a leader in the global aviation industry.