The Qantas Group has announced a robust financial performance for the half-year ending December 31, 2024, demonstrating the strength of its dual-brand strategy and the enduring demand for travel.
The group reported an Underlying Profit Before Tax of $1.39 billion, marking an 11% increase, and a Statutory Profit After Tax of $923 million, up by 6%.
This positive result underscores the efficacy of Qantas and Jetstar’s distinct market approaches, catering to a wide range of customer needs.
Dual-Brand Strategy Fuels Growth
The success of the half-year can be attributed to the strong performance of both Qantas and Jetstar. The group witnessed a significant rise in customer numbers, carrying nearly 10% more passengers across its domestic and international routes.
Qantas capitalized on the sustained demand for premium and corporate travel, while Jetstar thrived in a cost-conscious environment, carrying a record number of passengers.
Notably, approximately one in three Jetstar passengers flew for under $100, highlighting the airline’s commitment to affordable travel.
Fleet Renewal and Customer Experience
A key driver of the group’s performance is its ongoing investment in fleet modernization. During the half-year, Qantas welcomed 11 new and five mid-life aircraft.
Jetstar’s new Airbus A321LRs and A320neos, now numbering 21, have proven to be a game-changer, delivering significant improvements in fuel efficiency, network expansion, and customer satisfaction.
Qantas is also progressing with its fleet renewal, with five A220s now operational. While the initial costs of transitioning to a new fleet type temporarily offset the benefits, the long-term advantages are clear.
To further enhance the customer experience, Qantas has announced a significant cabin overhaul for 42 Boeing 737 aircraft. This will feature next-generation Business and Economy seats and larger overhead lockers.
Customer Focus
While customer satisfaction has improved across all segments, Qantas acknowledges the need for further progress.
The group is prioritizing key areas such as on-time performance, in-flight service, frequent flyer rewards, and a seamless travel experience. In recognition of their contributions, 27,000 non-executive employees received a $1,000 thank you payment in December.
Navigating Challenges
The Qantas Group has effectively managed the challenges of inflation through its ongoing transformation initiatives.
It faced higher airport and government charges, a constrained aviation supply chain, and the impact of the Same Job Same Pay legislation, Despite these external challenges, the Group has maintained strong financial performance.
For the first time since FY19, Qantas will pay dividends to shareholders. For market watchers, this is a $250 million base dividend and a $150 million special dividend, both fully franked (26.4 cents per share).
CEO Perspective and Outlook
Qantas Group CEO Vanessa Hudson highlighted the benefits of the dual-brand strategy and the strength of the loyalty program. She emphasized the progress made in improving customer experience and the continued focus on delivering in the moments that matter.
Looking ahead, the group anticipates strong travel demand across its portfolio. Group domestic unit revenue is expected to increase by 3-5% in the second half of the financial year, while international unit revenue is projected to remain flat.
The Qantas Group’s strong financial performance further boosts its drive to increased customer experience and fleet modernization.
This bodes well for continued success in the coming year. The return of shareholder dividends reflects the group’s financial strength and its confidence in the future.
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