Australia’s largest airline Qantas is to upgrade part of its 737 fleet and take delivery of 11 new aircraft by June as its profit jumps 11% for the first half of FY25.
On Thursday the airline announced a 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 Qantas Group said it continues to invest in renewing its fleet with 11 new aircraft and five mid-life aircraft arriving in the half.
A key highlight it said in 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.
Qantas said that 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 will see 42 Qantas Boeing 737 aircraft fitted with new cabins including next generation Business and Economy seats and larger overhead lockers.
It added that while customer satisfaction improved for all segments, there is more progress to be made. It said that 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.
Qantas added that 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).
Qantas Group CEO Vanessa Hudson said:
“The Group’s performance highlights the benefits of having both a premium and a low fares airline and a strong loyalty program.
“With a growing fleet of new aircraft, Jetstar went from strength to strength delivering a better experience for customers and an improved financial performance. Importantly, Jetstar was able to help more Australians take a holiday for less.
“Qantas Domestic revenue grew strongly and, like Jetstar, will see significant benefits as its fleet renewal ramps up, starting with the arrival of the A321XLR in the coming months.
“We’re seeing progress from the investments we are making for our customers and people but we know there’s more work to do to consistently deliver in the moments that matter. This is a key part of rebuilding trust and continues to be our focus.
“Australians have always loved to travel and continue to prioritise it over other spending options. Looking forward, we continue to see intention to travel from leisure and corporate customers remaining high.
“Our financial strength means we are now in a position to pay our shareholders dividends for the first time in almost six years.
“The dedication of our people and the continued loyalty of our customers underpin our success, and I want to sincerely thank them.”
