How airlines are making more profit post-Covid

Airlines have transformed from survival mode to super profitable in a matter of years.

Qantas Airways is making more revenue per passenger than it was before the pandemic, especially on its international network, which is not at 100 per cent capacity yet.

“Probably every airline in the world is, because you’ve got this massive demand, and supply still constrained.” Qantas chief executive Alan Joyce told Markets with Madison.

Qantas was on track to make an A$2.5 billion underlying profit this financial year, compared with A$1.4b in 2019.

It was now adding more aircraft to its fleet and some costs were coming down, including the price of jet fuel, amid pressure on the airline to reduce airfares and resume dividends.

Joyce discusses the airline’s extra profitable business model, and how long it may last, in today’s episode of Markets with Madison above.

Get investment insights from the experts on Markets with Madison every Monday and Friday on the NZ Herald.

Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.