Qantas takes off with $2.4b profit
Qantas has reported full-year underlying profit after tax of $2.47 billion and announced plans to replace its ageing fleet of Airbus A330s with two dozen new aircraft to meet “incredibly robust” demand.
Qantas CEO Alan Joyce announced a $2b profit after the airline successfully lobbied the federal government to block extra Qatar Airways flights which the industry says would have increased competition and cut airfares. Photo: AAP Image/Bianca De Marchi
Revenue grew to $19.8 billion, from $9.1 billion last year. It had $17.97 million in 2018/19, before the pandemic, Qantas said on Thursday.
“These results show a substantial turnaround in both our finances and service over the past year,” chief executive Alan Joyce said.
“Travel demand is incredibly robust and we’ve taken delivery of more aircraft and opened up new routes to help meet it.”
The flagship carrier’s net debt incurred to stay afloat during COVID-19 was reduced 27 per cent to $2.89 billion. It has suffered $7 billion in statutory losses over the past three years.
Qantas is not paying a dividend but has committed to buying back up to $500 million in shares with its balance
It also announced it will buy another 24 wide-body aircraft – a dozen Boeing 787s and a dozen Airbus A350s.
Deliveries will start in 2026/27 and continue into the next decade, replacing the bulk of Qantas’ aging A330 fleet it uses on domestic east-west flights as well as trips to Asia and Hawaii and on its Brisbane to Los Angeles flight.
The Australian and International Pilots Association (AIPA) also welcomed the decision to purchase the new aircraft.
“AIPA is pleased that Qantas is undertaking a fleet rejuvenation program and looks forward to the promotional opportunities these purchases will provide to our members,” said Captain Tony Lucas, President of AIPA.
– with AAP
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