Qantas has reported a record half-year result for the first six months of the 2022/23 financial year (1H FY23) while reducing its net debt to $2.4 billion.
Marking a return to profit, the flying kangaroo recorded an Underlying Profit Before Tax (PBT) of $1.43 billion and Statutory Profit After Tax of $1 billion.
The national carrier said it was on track to complete its $1 billion COVID recovery plan by the end of FY23 on June 30.
Indeed, the Underlying PBT for the six months to 31 December 2022 was 49 per cent higher than the previous 1H record achieved in FY18.
Qantas CEO’s take
“This is a huge turnaround considering the massive losses we were facing just 12 months ago,” Qantas CEO Alan Joyce said.
“When we restructured the business at the start of COVID, it was to make sure we could bounce back quickly when travel returned. That’s effectively what’s happened, but it’s the strength of the demand that has driven such a strong result.
Also, with fuel costs and supply chain challenges “starting to unwind”, the Qantas boss said the airline “can add more capacity, and that will put downward pressure on fares”.
Joyce added that a return to profit meant “we can get back to reinvesting for our customers, which is clear from the network, fleet and lounge announcements we’ve made”.
This week, Qantas unveiled a $100 million upgrade to many of its Australian and overseas lounges, including a new First Lounge at London Heathrow.
“In terms of overheads, we expect the costs we’re carrying from the extra operational buffer will start unwinding from this half and into next financial year,” Joyce added.
“Our people have been absolutely central to our recovery, and that’s why we’re so pleased to be in a position to reward them with up to $11,500 in cash and shares and why we’ve given them another $500 staff travel credit today.”
For the full Qantas Group ASX results, head to www2.asx.com.au/markets/company/qan
Qantas today also unveiled new concepts for its First Class and Business Class A350 cabins for its forthcoming direct flights to New York and London.
For more information, head to the Qantas website.
