Qantas reveals massive billion-dollar half-year profit

Qantas has rebounded from some tough times during Covid. Photo / 123RF

Qantas hasn’t had the strongest 12 months amid profit losses and controversies surrounding sacked staff, customer service issues and flight cancellations — but its latest profit figures show the future of the flying Kangaroo is looking up.

The airline said it was expecting a net profit before tax of A$1.35 billion (NZ$1.47b) to A$1.45b in the first half of the 2023 financial year as demand for travel soars.

And it appears it has exceeded its expectations. It has posted A$1b half-year profit, dramatically turning around its fortunes from a A$456 million loss for the same period a year earlier.

The airline returned an underlying profit before tax of A$1.43b for the first half of FY23 — it had a statutory profit after tax of A$1b.

Its net debt also declined to A$2.4b. Qantas said its return to profit comes after three years and A$7b of cumulative losses due to the pandemic.

Qantas Group CEO Alan Joyce described it as a “huge turnaround considering the massive losses we were facing just 12 months ago”.

“When we restructured the business at the start of Covid, it was to make sure we could bounce back quickly when travel returned,” he said on Thursday.

“That’s effectively what’s happened, but it’s the strength of the demand that has driven such a strong result.”

He addressed rising fares saying it’s due to higher fuel costs.

“But also because supply chain and resourcing issues meant capacity hasn’t kept up with demand,” Joyce added.

“Now those challenges are starting to unwind, we can add more capacity and that will put downward pressure on fares.”

Joyce said in terms of overheads, Qantas expect the costs it is carrying from the extra operational buffer will start unwinding from this half and into next financial year.

“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 A$11,500 in cash and shares, and why we’ve given them another A$500 staff travel credit today,” he announced.

“Returning to profit means we can get back to reinvesting for our customers, which is clear from the network, fleet and lounge announcements we’ve made, and from the Project Sunrise cabins we’re previewing. Importantly for our investors, this also sets us up to deliver long term shareholder value.”