Sydney, Feb 22: The Qantas Group has announced its financial results for the first half of the fiscal year 2024, revealing an Underlying Profit Before Tax of $1.25 billion, a 13 per cent decrease from the previous year.
Despite the drop, the airline continues to demonstrate strong performance and commitment to customer service and sustainability initiatives.
Statutory Profit After Tax also saw a 13 per cent decline, standing at $869 million, while earnings per share decreased by 4 per cent to 52 cents.
Net debt increased to $4.0 billion, reflecting the Group’s ongoing investments in fleet renewal and
In response to the evolving market dynamics, Qantas has revealed plans for additional capital expenditure, forecasting between $3.7 and $3.9 billion for FY25.
This includes an order for 8 more A321XLR aircraft for its Domestic operations and an acceleration of Wi-Fi rollout on international flights, aiming to enhance passenger experience further.
The Group also announced a $500 travel credit for its approximately 24,000 employees, acknowledging their contributions to the company’s recovery and ongoing success.
Qantas Domestic and Jetstar Domestic have shown resilience, with increased flying capacity and improved customer satisfaction. However, falling fares have impacted revenues, with Qantas Domestic’s Underlying EBIT down by 18 per cent to $641 million.
Despite these challenges, Jetstar Domestic’s performance has significantly improved, with a 35 per cent increase in Underlying EBIT to $175 million.
On the international front, Qantas International expanded its capacity by 39 per cent, reintroducing and adding routes as travel demand continues to recover. This expansion, coupled with a robust performance from Jetstar’s international operations, underscores the Group’s strategic focus on leveraging strong leisure demand and operational efficiencies.
Freight operations experienced a downturn, particularly in the international segment, attributed to macroeconomic pressures and increased capacity on key routes. Nonetheless, domestic freight remained stable, supported by e-commerce growth and fleet modernization efforts.
Qantas Loyalty continues to thrive, with a 23 per cent increase in Underlying EBIT to $270 million, driven by membership growth and successful partnerships.
The loyalty program’s expansion into new markets and services underscores Qantas’s commitment to diversifying revenue streams and enhancing customer engagement.
Looking ahead, the Group remains optimistic, with robust travel demand across all sectors. I
t anticipates stable unit revenue for domestic operations and a gradual normalization for international routes.
With a focus on efficiency, revenue enhancement, and strategic investments in fleet and sustainability, Qantas is well-positioned to navigate the challenges and opportunities of the evolving aviation landscape.
As Qantas Group CEO Vanessa Hudson reflects on the results, she emphasizes the importance of continuous improvement in service and product offerings to meet customer expectations and drive long-term success.
The Group’s strategic initiatives, including fleet renewal, digital platform upgrades, and a focus on sustainability, are pivotal in strengthening its market position and delivering value to stakeholders.
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