Qantas has posted a record-breaking billion-dollar half-yearly profit in the midst of a post-pandemic boom. The airline has seen a surge in domestic travellers and a return of international passengers, boosted by the Australian government’s trans-Tasman travel bubble.
This record profit is a sign of the airline’s resilience and hard work, as the company has navigated a difficult period for the travel industry.
The company reported an underlying profit before tax of $1.43 billion, accompanied by a statutory profit after tax of $1.0 billion – a 49 per cent increase from its first-half record result for the 2018 financial year.
Net debt for Qantas decreased to $2.4 billion, resulting in 53.9 cents of statutory earnings per share. This represents a total transformation of $2.7 billion compared to the previous period.
The figure for the first half of the last financial year was dwarfed by the total revenue of just under $10bn, three times greater.
The improved financial results are a major boost for the airline, which has suffered from the pandemic-induced travel downturn for more than a year. The airline had to ground its international fleet for months, and its domestic flights were severely restricted by state-based travel restrictions.
Qantas CEO Alan Joyce said the airline had worked hard over the past year to ensure it was in the best possible position to take advantage of the post-pandemic travel market.
“We’ve been able to focus on our customers and our core business while also investing in a range of future-focused initiatives that will help us to further strengthen our position in the market,” he said.
“Travel demand has been very strong, especially for leisure trips. Despite the expectation of rising interest rates and inflation which could impact discretionary spending, there are currently no indications that this will happen in the near future.”
Mr Joyce remarked that the result was an extraordinary transformation in light of the enormous losses we were up against only one year prior.
“At the start of Covid, we restructured the business in order to ensure that we would be able to swiftly recover once travel resumed,” Mr Joyce said.
“We are delighted to be able to reward our people, who have been instrumental in our recovery, with a combination of cash and shares up to a value of $11,500, as well as an additional $500 in staff travel credit.”
