Qantas has sold its rights to terminal 3 back to Sydney Airport for $535 million in cash.
The airline held a 30-year lease on the terminal, signed in 1989, which was due to expire in June 2019. It will retain exclusive use of Terminal 3 until then and retain priority usage up to June 2025.
CEO Alan Joyce says the agreement is strategically and financially positive for both parties.
“This deal secures Qantas’ long-term position in our largest hub, ensuring priority usage as the primary airline customer of Sydney’s Terminal 3,” he says.
Qantas is in the middle of a massive restructure, paying down debt, cutting costs and jobs, and increasing revenue.
About 4,000 jobs of a planned 5,000 have been cut.
Qantas posted an underlying profit of $367 million, ahead of forecasts, for the six months to the end of December, a 245.6% improvement.
Its annual results are due to be released later this week.