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$1b recovery plan complete: Qantas announces $1.74 billion profit; fares fall 12%

Qantas Group has revealed its first full-year statutory profit after tax in four years, reporting a $1.74 billion profit for FY23.

Qantas Group has revealed its first full-year statutory profit after tax in four years, reporting a $1.74 billion profit for FY23.

With an underlying profit before tax of $2.47 billion, the results are in stark contrast to the $7 billion in accumulated losses Qantas recorded over the past three years.

Qantas says the turnaround completes the company’s $1 billion recovery program and comes on the back of a 132 per cent year-on-year increase in flying and “strong travel demand”.

With the announcement, Qantas says it will share the benefits of its profit by giving back to its staff, reinvesting for its customers and returning capital to shareholders.

“These results show a substantial turnaround in both our finances and service over the past year,” Qantas Group CEO Alan Joyce said.

“Flight delays and cancellations have largely returned to pre-COVID levels and we’ve shifted from heavy losses to a strong profit and pipeline of investment worth billions of dollars.

“We safely flew almost 70 billion more seat kilometres and doubled the number of people we carried to 46 million compared to the year before. 

“Travel demand is incredibly robust and we’ve taken delivery of more aircraft and opened up new routes to help meet it.”

Joyce also lauded “significantly” improved customer satisfaction, citing the company’s own data.

Qantas Joyce
Qantas CEO Alan Joyce

“It’s because we’re in a strong financial position that we’re able to invest in new aircraft, new destinations and new training facilities – all things that will make us better in the future,” he added.

“Our people have done a superb job under very difficult circumstances. 

“Today’s result means more than 21,000 non-executive staff will receive up to $6,000 worth of Qantas shares as a thank you for their part in our recovery, plus another $500 staff travel credit.

“This is in addition to a $5,000 cash payment to eligible employees as new enterprise agreements are finalised.”

Fares fall, but are still higher

Elsewhere, Qantas reported that airfares fell by around 12 per cent in the second half of FY23, thanks to extra capacity, moderating fuel costs and a stronger Aussie dollar. According to the group, prices peaked in the second quarter of FY23. 

Overall, international fares are 10 per cent higher than pre-pandemic levels, while domestic fares are four per cent higher in inflation-adjusted terms.

New aircraft

In other news, the company announced it had placed an order for 24 more wide-body aircraft comprising 12 Boeing 787s and 12 Airbus A350s, with deliveries to commence in FY27. The new jets will replace most of the current A330 fleet.

The firm order comes on top of an order for 12 modified A350s to fly Project Sunrise services, which are due to arrive in FY26.

Read all about it here: Upgrading: Qantas orders 24 new Dreamliners and A350s to replace ageing A330s

Capacity boost

This week, Qantas said it would increase air capacity on flights to New York, Los Angeles, Johannesburg and Bali as it returns more aircraft to its fleet, including its last two A380s.

This followed an announcement earlier in the year of a raft of major updates to its international network, including a big boost to services to the US and across Asia as well as multiple new routes.

Last month, Qantas racked up a new record as Australia’s most on-time major domestic airline for an unmatched 10 months in a row since performance records started in November 2003.