Qantas has reported investments in customers, aircraft and people as Air New Zealand fails to keep up with its strong start to the year, noting a tough economic outlook across the ditch as a major factor in its FY 2024 results.
Qantas
The Flying Kangaroo reported “delivered strong earnings in FY24” in its media release today.
It did however note a 16 per cent drop in underlying profit before tax to $2.08 billion and a statutory profit after tax of $1.25 billion for the year ending 30 June 2024 and says it has invested in customers, aircraft, employee benefits and shareholder returns.
Qantas still has $4.1 billion in net debt.
Overall earnings reduced compared to last year as fares moderated with the return of market capacity, spending on customer initiatives increased and freight revenue reduced predominantly in the first half. Group Domestic unit revenue provided positive momentum in the second half, increasing on 2H23 levels.
Qantas and Jetstar saw significant improvements in operational performance and customer satisfaction across the year, driven by investments in its operations, enhanced food and beverage, an overhaul of Qantas’ digital platforms and increased availability of frequent flyer seats.
“This result shows the underlying strength of the Group’s integrated portfolio,” Qantas CEO Vanessa Hudson said.
“Qantas benefited from increased corporate and resources travel and ongoing high demand for international premium seats while Jetstar delivered its highest result as it grew to meet increased demand from price-sensitive leisure travellers and saw the benefits from its new aircraft.
“The introduction of Classic Plus, with millions of frequent flyer seats, helped drive member engagement and strong earnings for Qantas Loyalty.
“The investment in operational reliability and customer initiatives delivered a positive improvement in on time performance and customer satisfaction with Qantas ending the year as the most on time major domestic airline.
“Our strong financial performance and balance sheet will allow us to continue to invest in our largest ever fleet renewal program, which will benefit our customers and people, as well as delivering shareholder returns.
Air New Zealand
Air New Zealand today announced earnings before taxation for the 2024 financial year of $222 million compared to $574 million for the same period last year.
This was an expected reduction on the prior year, when the airline recorded one of its highest ever results following the reopening of New Zealand’s border. Net profit after taxation was $146 million and Air New Zealand reported a liquidity of $1.5 billion.
While Air New Zealand reported a solid first half result, the second half of the financial year proved increasingly challenging as the impact of operational and economic headwinds became more pronounced.
Chair Dame Therese Walsh acknowledged the hard work and efforts of 11,7001 Air New Zealanders who have risen to the raft of challenges the airline has faced.
“It’s been a difficult year managing both macroeconomic and operational challenges. I’d like to thank the Air New Zealand whānau, not only for navigating these issues with great skill and manaaki, but also for never losing sight of what the organisation needs to do to be a future-fit airline.
“We know these challenges will pass, some faster than others, but they have had a significant impact on our financial performance this year.
“Today we announced earnings before taxation of $222 million and estimate earnings would have been around $100 million higher, net of compensation, had we been able to operate our aircraft and schedule as intended.”
