The Qantas Group today released its financial results posting for the first half of the 2023 financial year where it revealed a statutory profit after tax of $1 billion.
This result comes as travel-hungry customers, higher airfares and the booming travel market has surged the recovery for the group.
Alongside its profit, Qantas Group CEO Alan Joyce said that the group will reward its staff with up to $11,500 in cash and shares, alongside another $500 staff travel credit. The group also announced an on-market share buy-back if up to $500 million.
The group suffered $7b in statutory losses due to the pandemic, which has now declined to $2.4b. Qantas said that its $1b COVID recovery plan is on track for completion by end of FY23.
“This is a huge turnaround considering the massive losses we were facing just 12 months ago,” Joyce said.
“When we restructured the business at the start of COVID, it was to make sure we could bounce back quickly when travel returned. That’s effectively what’s happened, but it’s the strength of the demand that has driven such a strong result.
“Fares have risen because of higher fuel costs, but also because supply chain and resourcing issues meant capacity hasn’t kept up with demand.
“Now those challenges are starting to unwind, we can add more capacity and that will put downward pressure on fares.”
The Group earned $1.43 billion underlying profit before tax to 31 December 2022, which is 49 per cent higher than the prior first half record result achieved in FY18.
Qantas’ Group Domestic delivered an underlying earing before interest or tax (EBIT) of $915 million, with flying increasing from 86 per cent of pre-COVID capacity in 2H22 to 94 per cent during the half. Qantas’ domestic operations delivered $785 million and Jetstar’s $130 million.
Qantas’ Group International delivered underlying EBIT of $511 million as capacity almost doubled from 31 per cent of pre-COVID capacity in 2H22 to 60 per cent during the half. Two routes were re-opened and seven new routes were started.
Qantas Loyalty delivered $1 billion in revenue and underlying EBIT of $220 million for the half, a 73 per cent increase on 1H22, and is on track to reach the top end of the $425 million to $450 million range for its full year target. Key drivers were the rebound in travel combined with growth in partners and products across the Loyalty portfolio.
The group said it plans to reinvest this money to improve customer experience over the short and long term. This include its recently announced expansion of domestic and international lounges over three years, a 50 per cent increase in Frequent Flyer Classic Reward sears on international services, new routes and general improvement with catering, in-flight entertainment, staffing levels, customer-facing apps and Qantas’ and Jetstar’s fleets.
