The Qantas Group achieved an Underlying Profit Before Tax of $1.39 billion, an increase of 11 per cent, and a Statutory Profit After Tax of $923 million, an increase of 6 per cent, for the half year ended 31 December 2024.
The airline said that the performance was driven by the strength of the Group’s dual brand strategy with demand for travel remaining strong across all customer segments. Qantas and Jetstar’s domestic and international businesses delivered increased profitability carrying almost 10 per cent more customers.
Premium and corporate travel remained strong for Qantas while Jetstar carried a record number of customers in a high cost of living environment, with around one in three flying for less than $100.
The Group continues to invest in renewing its fleet with 11 new aircraft and five mid-life aircraft arriving in the half.
Qantas said a key highlight of the result was the contribution from Jetstar’s new Airbus A321LRs and A320neos, which have grown to 21 aircraft providing scale benefits and are now delivering a step change in fuel efficiency, network growth and customer satisfaction.
Qantas’ fleet renewal is also underway with five A220s now in operation and performing well. However, as the fleet is still sub-scale, benefits were outweighed in the half by costs associated with transitioning to a new fleet type.
The investment in new aircraft will be complemented by a significant cabin overhaul across existing aircraft to improve the flying experience for customers. New investment announced today will see 42 Qantas Boeing 737 aircraft fitted with new cabins including next generation Business and Economy seats and larger overhead lockers.
Qantas Loyalty also performed well, underpinned by active member engagement and cash inflows from partners growing by 11 per cent and 18 per cent respectively, as well as a significant investment in increased reward availability through the roll out of Classic Plus.
While customer satisfaction improved for all segments, there is more progress to be made. The Group is focused on the things that matter most for customers including improved on time performance, inflight service, rewards for frequent flyers and a more seamless travel experience. In recognition of the outstanding contribution our people make every day, the Group made a $1,000 thank you payment to 27,000 non-executive employees in December.
Transformation remains a priority for the Group and has effectively offset the impact of inflation for the half. The Group has seen higher than CPI growth in airport and government charges, a constrained aviation supply chain driving higher engineering costs and the impact of Same Job Same Pay legislation on wages.
For the first time since FY19, the Group will pay dividends to shareholders, with a $250 million base dividend and a $150 million special dividend, which are both fully franked (26.4 cents per share).
