Qantas Profits Slip But Revenues Grow

Daniel Fowkes
25 Feb 2024
· Airlines 
Qantas has said that while profits for the first half of the 2024 FY have slipped, its revenues have considerably increased.

Qantas, alongside several other updates across the past week, also published its first half of 2024 financial year results, which saw pre-tax profits down 13.2%.

A pre-tax profit came in at AUD 1.25 billion, a strong amount that was down year over year as Qantas cites the decrease in the overall costs of fares as the industry normalises.

Despite a lower pre-tax profit, the airline did see net revenue grow across the first six months of the financial year towards AUD 11.1 billion. Ultimately, this represented a 12% rise from the first half of the 2023 financial year.

Investments In Product

Qantas says that throughout the first six months, it was able to invest significantly in its customers with the introduction and announcement of major changes to its global network.

Notably, the airline welcomed its first two Airbus A220s with these two aircraft completing crew familiarisation flights across recent months and are slated for an entry into service momentarily.

Away from new aircraft, the airline also said it’ll, at long last, roll out Wi-Fi across international flights, referencing the investment in its digital platform. Despite having a strong international network and some of the longest flights in the world, Qantas has always been very behind with no wifi offered, even on newly delivered 787s.

Qantas believes it needs to make these investments to ensure its long-term customer satisfaction levels can grow. However, these investments also align with the broader group’s mission to restore confidence lost by its customer base.

The Chief Executive, Vanessa Hudson, who replaced Alan Joyce, said that in December 2023, customer satisfaction levels returned strongly. The view is that the group will see significant rewards when more of these investments turn from only announcements to becoming a formal business element.

Comments From CEO

There’s a lot of work happening to lift our service levels and the early signs are really positive. Our customer satisfaction scores have bounced back strongly since December and we have more service and product improvements in the pipeline. Having the financial strength to keep investing is key, and that makes the strong performance that all business units had in the first half so important. We understand the need for affordable air travel and fares have fallen 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.

Qantas Group CEO Vanessa Hudson

Freight Performance

Qantas says that its freight market also saw a stable performance, primarily underpinned by the e-commerce strengths in several leading markets.

However, the group said it was able to enjoy many successes thanks to the continued modernisation efforts of the fleet by introducing more aircraft. Interestingly, international freight demand struggled. Freight revenue was down by around AUD 200 million.

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