The post Qantas Group Navigates Turbulence with $1.25B Profit, Jetstar Ascends Despite Challenges appeared first on TD (Travel Daily Media) Brand TD.
In its first half-yearly report under CEO Vanessa Hudson, the Qantas Group has announced a $1.25 billion underlying profit before tax (PBT) for H1 FY24, marking a 13% decrease from the record $1.43 billion in FY23. The dip in earnings is attributed to lower fares and increased capacity. Despite the decline, the group reports strong travel demand across all sectors, with leisure travel booming and business travel nearing pre-pandemic levels. Total flying grew by 25%, carrying 3.3 million more passengers than in H1 2023. Lower fares led to a decrease in revenue per seat kilometre, resulting in an approximate $600 million decline in profit—however, around $485 million worth of extra flying offset this. Segment Performance Qantas International grew capacity by 39% in the six months to 31 December 2023, thanks to the return of another A380 and a new B787. Qantas is now operating more international routes than before COVID. Qantas Domestic added 5% more capacity in H1, driven by the continued comeback of business travel and premium leisure sectors. PBT for Domestic was $641 million, an 18% decline on H1 2023, but still significantly above FY19 levels. Jetstar increased international capacity by 38% year-on-year, adding routes like Melbourne-Fiji and Brisbane-Tokyo. Jetstar International grew its PBT to $150 million, driven by leisure demand despite lower fares. With 15% more capacity and less operational disruption, Jetstar Domestic grew its PBT by a massive 35% to $175 million. Qantas Loyalty showed massive growth, with PBT increasing by 23% year-on-year to $270 million and membership expanding to 15.8 million. This H1 performance enabled Loyalty to reach its earnings target of $500 million annually six months early. Future Plans and Investments Qantas Group announced several significant investments, including an expedited rollout of its free Wi-Fi on international flights due to start at the end of 2024, a substantial overhaul of its digital platforms, including an enhanced Qantas app and a new Qantas website from mid-2024. The group received eight new and mid-life aircraft during H1 2024, with 14 more planes expected to arrive during H2. It also announced eight more A321XLRs for Qantas Domestic and four extra mid-life A319s for Western Australia. However, manufacturing delays for the first A321XLR have pushed the plane’s arrival back three months to early 2025. Qantas International’s Project Sunrise will be postponed by approximately six months to mid-2026 due to a delay in the arrival of the airline’s A350 aircraft. Driven by the arrival of new aircraft, the group says it will continue to invest heavily in people, including recruitment and training. To acknowledge the efforts of its employees, some 24,000 non-executive staff members will be given a $500 travel voucher to be used for standby fares for staff, friends, and family. CEO Vanessa Hudson said, “We know that millions of Australians rely on us, and we’ve heard their feedback loud and clear. A lot of work is happening to lift our service levels, and the early signs are really positive. Our customer satisfaction scores have bounced back strongly since December, and more service and product improvements are in the pipeline. Having the financial strength to keep investing is key, making the strong performance that all business units had in the first half so important. Hudson also confirmed a decrease in airfares of “more than 10 per cent since peaking in late 2022”. “At the same time, we’ve seen a cost benefit from fewer cancellations and delays and scale benefits as more international flying returns,” she remarked. “Our people have been instrumental in the initial recovery we’re seeing, and I thank them sincerely. Our journey will take time, but the spirit they are bringing is fantastic, and it’s made us optimistic about what we can achieve together. “I want to thank our customers and partners for their support as we keep working to make the Qantas Group an organisation that everyone is proud of.” The post Qantas Group Navigates Turbulence with $1.25B Profit, Jetstar Ascends Despite Challenges first appeared on Stray Nomad Travel News.
The post Qantas Group Navigates Turbulence with $1.25B Profit, Jetstar Ascends Despite Challenges appeared first on Brand TD.