Qantas Delivers Strong Financial Performance
The Qantas Group achieved an Underlying Profit Before Tax of $1.39 billion, marking an 11% increase for the half-year ending 31 December 2024. Statutory Profit After Tax rose 6% to $923 million. The company attributed its success to the dual-brand strategy of Qantas and Jetstar, with demand for travel remaining strong across all customer segments.
The airline carried 10% more customers, with premium and corporate travel remaining robust for Qantas, while Jetstar recorded its highest-ever passenger numbers despite a challenging economic environment. Around one in three Jetstar passengers flew for less than $100.
Fleet Renewal and Customer Experience Upgrades
Qantas continues to invest in fleet expansion, adding 11 new aircraft and five mid-life aircraft during the half-year. The Jetstar fleet now includes 21 Airbus A321LRs and A320neos, improving fuel efficiency and network reach.
Qantas has begun a fleet renewal program, introducing five A220s. While these aircraft performed well, the costs of transitioning to a new fleet type temporarily offset their benefits.
The airline also announced a significant cabin overhaul for 42 Boeing 737 aircraft, featuring upgraded Business and Economy seats and larger overhead lockers to enhance passenger comfort.
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Qantas Loyalty Program Growth
Qantas Loyalty delivered strong results, with active member engagement growing by 11%. Cash inflows from partners increased by 18%, driven by new reward offerings. Classic Plus, a new rewards initiative, significantly expanded the availability of Classic Reward flights.
CEO Vanessa Hudson’s Statement on Performance and Outlook
Qantas Group CEO Vanessa Hudson highlighted the strength of the company’s dual-brand strategy and loyalty program, which drove revenue growth.
“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,” she stated.
Figure 2: According to Vanessa Hudson, CEO of Qantas Group, Jetstar has been able to improve customer satisfaction and financial performance by expanding its fleet of new aircraft. [Image: NewsWire / John Appleyard]
She added that corporate and leisure travel demand remained high, reinforcing Qantas’ financial position. For the first time since 2019, Qantas will pay fully franked dividends, including a $250 million base dividend and a $150 million special dividend.
Domestic and International Performance
Domestic Market Growth
Qantas’ domestic business recorded an Underlying EBIT of $916 million, with 5% unit revenue growth. Load factors increased by 2 percentage points as corporate and leisure travel demand rose.
Business travel rebounded, with Qantas maintaining a strong market share among Australian businesses. The resources sector also contributed to growth, with a 14% increase in charter revenue, aided by the addition of more A319 aircraft.
Jetstar saw a 54% increase in domestic earnings, driven by the introduction of eight new aircraft. The airline’s capacity expanded by 8%, offering more low-cost travel options to Australians.
Qantas plans to add seven new aircraft in the second half of FY25, including its first A321XLR and more Jetstar A321LRs.
International Market and Freight Performance
Qantas International delivered an Underlying EBIT of $497 million, up 5%, with strong demand for premium cabins.
Jetstar expanded international capacity by 26%, introducing six new routes and redeploying existing 787 aircraft to long-haul destinations. The airline’s routes to Japan and Bali remained popular.
Qantas Freight revenue grew 11%, supported by increased capacity, fleet renewal, and e-commerce demand.
Customer and Employee Initiatives
Qantas and Jetstar continue to invest in customer experience improvements. Recent enhancements include:
- Lounge upgrades in Adelaide and Broome.
- Flexible flight credits and enhanced baggage tracking.
- Jetstar digital service improvements for faster check-ins and payments.
Qantas’ on-time performance improved, with boarding times reduced by three minutes since the introduction of group boarding. The company plans to expand this initiative across all regional, domestic, and international flights departing Australia.
Employee engagement improved, with 1,500 new hires in the first half of FY25 and $40 million invested in new training facilities.
Sustainability and Governance
Qantas continues to progress towards its 2030 sustainability targets. The airline committed over $100 million to sustainable aviation fuel (SAF) projects and environmental initiatives.
Through a partnership with the Great Barrier Reef Foundation, Qantas supports reef restoration. The airline also diverted 130 tonnes of waste through in-flight recycling programs.
The Qantas Board has implemented governance reforms, following an August 2024 review that identified 32 key areas for improvement.
Outlook for the Second Half of FY25
Qantas expects strong demand for both domestic and international travel.
- Domestic unit revenue is projected to grow by 3-5%.
- International unit revenue is expected to remain stable.
- Net freight revenue is forecast to increase by $10-30 million.
- Fuel costs for FY25 are estimated at $5.22 billion.
- The company aims to offset inflationary pressures through cost and revenue initiatives.
With a strong financial position, fleet expansion, and growing customer demand, Qantas remains optimistic about the second half of FY25.
