- Underlying Profit Before Tax: $1.25 billion (down 13 per cent)
- Statutory Profit After Tax: $869 million (down 13 per cent)
- Statutory earnings per share: 52 cents (down 4 per cent)
- Net debt: $4.0 billion
- Additional on-market share buy-back of up to $400 million announced.
- Fares falling as capacity continues to normalise; restart costs unwinding.
- Significant improvement in customer satisfaction; more work to do.
- Capital expenditure rising in FY25 to between $3.7-3.9 billion.
- 8 additional A321XLRs on order for Qantas Domestic.
- Acceleration of Qantas International Wi-Fi from end calendar 2024.
- $500 staff travel credit for around 24,000 employees.
The Qantas Group has continued its investment in customers and new aircraft, supported by a $1.25 billion Underlying Profit Before Tax for the first half of FY24.
Earnings were 13 per cent lower than the same period of FY23 as fares and capacity continued to normalise.
Lower fares contributed to reduced revenue per available seat kilometre[1] which had around a $600 million impact on profit, while freight yields fell by $146 million. However, this was mostly offset by contribution from increased flying of $485 million and unwinding of transition costs from the post-COVID restart of $179 million. Unit cost (excluding fuel) fell by 5.2 per cent year-on-year.
Total flying increased by 25 per cent on an available seat kilometre basis and the Group carried 3.3 million more passengers compared with 1H23.
Travel demand remains strong across all sectors, with leisure continuing to lead and business travel now approaching pre-COVID levels. Intent to spend on travel among Qantas Frequent Flyers over the next six months remains significantly higher than most other major spending categories[2].
INVESTING IN CUSTOMERS AND PEOPLE
The Qantas Group has today announced several major investments for customers, including revealing the interiors of its new A220 aircraft, accelerated rollout of Wi-Fi on international flights and a major upgrade to digital platforms. A double Qantas Points/Status Credits offer for Frequent Flyers has also been launched in addition to regular domestic and international fare sales.
