Qantas rebounds to record profit as demand outpaces capacity
QANTAS Airways bounced back to record half-year profit, underscoring the pace and intensity of aviation’s recovery from the pandemic as travel demand surges.
Net income in the six months ended Dec 31 was A$1 billion (S$912 million) compared with a loss of A$456 million a year earlier when coronavirus restrictions destroyed income.
Sydney-based Qantas also announced a stock buyback of as much as A$500 million, adding to a A$400 million programme announced in August.
From Ryanair Holdings in Europe to American Airlines Group, carriers around the world are cashing in on the rebound. With appetite for flights often outstripping available seats, there’s little to hold fares and profits back. Like Qantas, many airlines are also reaping the rewards from cost-cutting programmes or reorganisations implemented during the pandemic. Analysts expect Qantas to post record earnings this fiscal year.
Carriers worldwide have suffered losses approaching US$200 billion over the past three years. With travel restrictions falling away, the International Civil Aviation Organization expects passenger demand to recover to pre-Covid levels on most routes this quarter, and then to about 3 per cent higher than 2019 levels by year-end.
Qantas chief executive officer (CEO) Alan Joyce, who has held the role since 2008, is one of aviation’s longest-serving leaders. He has agreed to stay on until at least the end of 2023. Chairman Richard Goyder said in November he’d discuss with Joyce at some point this year how long he’d remain CEO.
Qantas’ underlying profit before tax in the latest six-month period — its preferred gauge of earnings because it strips out one-off costs — was A$1.43 billion compared with a loss of A$1.28 billion a year earlier. BLOOMBERG
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