Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo

21.03.2024 - 16:47 / insider.com / Alan Joyce / Mohammed Al-Meer / Airlines

The Airbus A380 — a giant commercial airliner famous for its two levels and four engines — was once an engineering marvel. It can carry up to 853 people and is large enough to sport lavish amenities such as an on-board shower and a bar.

But while the plane has been successful in strong hub-and-spoke networks such as those Emirates, Singapore Airlines, and Qatar Airways use, it's become a common casualty during the pandemic as airlines shift to newer, more fuel-efficient wide-body planes, such as the Boeing 787 and the Airbus A350.

Carriers, including Air France, Thai Airways, and Malaysia Airlines, have all ditched the A380 since 2020. Most of these aircraft end up scrapped or stored in " aircraft graveyards ," or storage facilities where carriers put planes after retiring them, scattered across the world.

Among the airlines that have kept the plane, Qatar, in particular, has gone back and forth on the future of its A380 fleet. In May 2021, the company's former CEO, Akbar Al Baker, told Simple Flying that he didn't see a future for the A380s .

"It was good when it had launched in 2002," he said. "But unfortunately, with the rising fuel price and the mistake in the design. We think it was a big mistake."

Nevertheless, the company's new CEO, Badr Mohammed Al Meer, who was appointed in November, told CNBC on Friday that the plane is expected to fly for at least another two to three years.

"Qatar Airways was basically to exit the A380s very soon this year," he said. "However, for different reasons, we've decided to extend the operation of the A380s."

Al Meer explained the decision, which comes down to demand, airport and airspace congestion, and the delayed Boeing 777X .

The A380 can carry many people , but the mammoth jet can be hard to fill.

And it's a fuel-hungry plane. Qantas Airways' former CEO, Alan Joyce, once said he could operate two 236-seat Boeing 787 Dreamliners for less than the cost of flying one 486-seat A380.

But Qatar is seeing "very high demand" for certain A380 markets in Europe and Asia, Al Meer said, adding that the jet has a load factor above 86%.

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That measure refers to how many seats an airline fills on its planes, with higher percentages indicating more revenue earned — offsetting the expensive operating costs.

"The only aircraft that can carry this number of passengers is the A380," Al Meer told CNBC. "Basically, it's given us what we are looking for."

He further explained that congestion issues in busy international airspace and on the ground at airports have forced the airline to fly its largest possible planes to carry the most people.

"The only way to make sure that you can carry enough number of passengers is to move from