Hudson delivers bumper $2bn Qantas profit

The number is 16 per cent down on FY2022–23’s record of $2.465 billion but still significantly up on pre-COVID FY18–19’s $1.3 billion.

The Flying Kangaroo attributed the dip to lower fares caused by increases in capacity across the sector and increased spending on customer initiatives.

It comes after the airline faced a string of problems last year, including the early exit of CEO Alan Joyce and chairman Richard Goyder over criticism that the carrier was providing poor service to customers.

However, on Thursday, Hudson hailed the results as showing the “underlying strength” of the wider group’s portfolio.

“Qantas benefited from increased corporate and resources travel and ongoing high demand for international premium seats while Jetstar delivered its highest result as it grew to meet increased demand from price-sensitive leisure travellers and saw the benefits from its new aircraft,” she said.

In a statement, the airline said the Qantas Group’s domestic operation delivered $1.3 billion in underlying earnings with an EBIT margin of 14 per cent, supported by Qantas and Jetstar’s “dual brand strategy”.

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“Jetstar grew its domestic network by 15 per cent year on year as demand for low fares travel strengthened, while Qantas’ capacity increased by 1 per cent as the continued return of corporate and small business travel more than offset a softening of demand for domestic premium leisure travel,” said the airline.

“Growth in resources sector flying continued with charter revenue up 18 per cent on the previous year, with the group adding three mid-life A319 aircraft to service these customers during the year.

“Qantas’ on-time performance was particularly strong in the fourth quarter nearing long-term averages with 80 per cent of flights departing on time, while 74 per cent of Jetstar flights departed on time. This improvement helped drive customer satisfaction with Qantas Domestic’s Net Promoter Score increasing by 24 points.

“Qantas’ mishandled baggage reduced by almost a third year on year and is now better than pre-COVID levels.

“The group also provided more than 45,000 Bonza and Rex customers with free of charge flights after they ceased operations.

“Group International earnings moderated to $755 million underlying EBIT as the return of global airline capacity put downward pressure on fares and freight yields declined.

“The Qantas Group returned to pre-COVID international capacity in May 2024, with the return of more aircraft, including two more A380s. The revenue from this additional flying was offset by an anticipated increase in competitor capacity, which resulted in an 11 per cent reduction in unit revenue, although the decline slowed in the second half.

“The performance and popularity of Perth–London, Perth–Rome and since July, Perth–Paris, continue to provide confidence in the launch of non-stop flights to London and New York from Melbourne or Sydney, with the A350-1000ULR expected to arrive in mid-2026.”

The airline also claimed to have completed “more than 120 customer initiatives and service level enhancements”, including refreshing cabins and adding baggage tracking.