Qantas CEO Vanessa Hudson announces a $1.25 billion underlying profit before tax for the airline’s first half of the financial year, citing both positive and challenging factors impacting the results.
Qantas, under the leadership of CEO Vanessa Hudson, unveils its half-yearly financial results, revealing a $1.25 billion underlying profit before tax for the first half of the fiscal year. Despite a 13 percent drop compared to the same period in FY23, the airline remains resilient amid industry challenges.
The half-yearly report ending December 31 also discloses a statutory profit after tax of $869 million, reflecting a similar 13 percent decrease, with an overall net debt of $4 billion. Qantas attributes the decline in profits to several factors, including lower fares impacting revenue per available seat kilometre and decreased freight yields. However, increased flying and the unwinding of transition costs from the post-COVID restart partially offset these challenges.
Vanessa Hudson emphasizes the company’s commitment to improving service levels, citing positive early feedback from customers. She acknowledges the importance of financial strength in sustaining investments aimed at enhancing customer experience. Hudson’s tenure as CEO follows Alan Joyce’s decision to expedite his retirement, signaling a period of renewal and strategic realignment for the airline.
Despite recent challenges, Qantas remains focused on its domestic operations, with a five percent increase in flying to meet recovering business travel demand. Premium leisure and resource sector demand continue to drive performance, albeit against a backdrop of falling fares impacting earnings before interest and taxes (EBIT). The introduction of the QantasLink Airbus A220 aircraft signals a commitment to fleet modernization, promising enhanced comfort and efficiency for passengers.
Looking ahead, Qantas aims to navigate industry headwinds while prioritizing customer satisfaction and operational excellence. Hudson acknowledges the invaluable contribution of Qantas employees in driving the company’s recovery efforts, underscoring a collective commitment to long-term success.
As Qantas continues its journey of transformation, Hudson reaffirms the company’s dedication to delivering superior service and value to customers and stakeholders alike. The introduction of innovative initiatives, such as the QantasLink Airbus A220 aircraft, reflects Qantas’ ongoing evolution to meet the evolving needs of the modern traveler.
