Qantas Posts Record $2.47 Billion Profit

August 24, 2023

Australia’s Qantas has posted a record A$2.47 Billion underlying profit beating the previous 2018 record by almost A$1 billion.

The profit came from revenue of just over A$19.8 billion, over $10 billion more than the previous year.

The Qantas Group said that its first full-year statutory profit since FY19 would result in rewarding employees, reinvesting for customers and returning capital to shareholders.

For FY23, the Group achieved an Underlying Profit Before Tax of $2.47 billion and a Statutory After Tax Profit of $1.74 billion. This compares with $7 billion in accumulated statutory losses over three prior years.

The airline said underpinning the profit was the completion of the Group’s $1 billion recovery program (launched in the first year of those losses), a 132 per cent increase in flying compared with FY22 and strong travel demand driving significantly higher revenue.

Operational performance improved considerably during the year after a challenging ramp-up, with Qantas achieving the best on-time performance of the major domestic airlines for 11 months out of 12 and Jetstar returning to pre-COVID levels. Qantas said that customer satisfaction, while not back to pre-COVID levels, has also improved in line with operational performance.

It added that normalising of international capacity and the unwinding of inefficiencies from the return to flying will help put downward pressure on fares and strengthen financial performance.

Qantas said that the strength enables the Group to keep investing in customer experience, including firm orders for a further 24 Boeing and Airbus widebody aircraft from FY27 onwards to replace Qantas’ A330 fleet, plus purchase right options for future renewal and growth.

A major fare sale and over 1 billion in loyalty bonus points to say ‘thank you’ to customers have also been announced.

Qantas Group CEO Alan Joyce said: “These results show a substantial turnaround in both our finances and service over the past year.

“Flight delays and cancellations have largely returned to pre-COVID levels and we’ve shifted from heavy losses to a strong profit and pipeline of investment worth billions of dollars.

“We safely flew almost 70 billion more seat kilometres and doubled the number of people we carried to 46 million compared to the year before. Travel demand is incredibly robust and we’ve taken delivery of more aircraft and opened up new routes to help meet it.

“The data shows customer satisfaction has improved significantly and we’re constantly working to deliver great travel experiences.

“It’s because we’re in a strong financial position that we’re able to invest in new aircraft, new destinations and new training facilities – all things that will make us better in the future.

“Our people have done a superb job under very difficult circumstances. Today’s result means more than 21,000 non-executive staff will receive up to $6,000 worth of Qantas shares as a thank-you for their part in our recovery, plus another $500 staff travel credit. This is in addition to a $5,000 cash payment to eligible employees as new enterprise agreements are finalised.”

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