Qantas group posted an underlying profit of AU$$2.47 billion ($1.63b) for the twelve months ended June 30th, 2023 (FY23).
In FY22, the Qantas group reported an underlying loss of AU$1.86 billion ($1.23b), and this year came close to doubling the 2019 financial year profit of AU$1.33 billion ($878m).
This year marks the first full-year statutory profit since FY19, and since then the group has accumulated losses of more than AU$7 billion ($4.62b). Qantas said the profit was underpinned by its now completed AU$1 billion ($660m) recovery program introduced in the first of those loss-making three years.
The group’s total revenue reached AU$19.8 billion compared to AU$9.1 billion ($6b) last year and AU$17.97 billion ($1.19b) in pre-pandemic FY19. By segment, Qantas domestic produced 33% of the revenue, International 37%, Jetstar Group 20% and Qantas Loyalty 10%.
Qantas domestic earned the highest profit, contributing AU$1.27 billion ($838m) to underlying profit, up from a loss of AU$765 million ($505m) in FY22.
Commenting on the results Alan Joyce, group chief executive Qantas said: “These results show a substantial turnaround in both our finances and service over the past year. Flight delays and cancellations have largely returned to pre-COVID levels and we’ve shifted from heavy losses to a strong profit and pipeline of investment worth billions of dollars.”
“We safely flew almost 70 billion more seat kilometres and doubled the number of people we carried to 46 million compared to the year before. Travel demand is incredibly robust and we’ve taken delivery of more aircraft and opened up new routes to help meet it. The data shows customer satisfaction has improved significantly and we’re constantly working to deliver great travel experiences,” Joyce added.
Domestic flying, which includes Qantas, QantasLink and Jetstar, increased to 103% of pre-COVID levels by the end of FY23, while international grew from 54% to 81% of pre-COVID levels during the twelve months. During FY23, the Group returned seven refurbished Airbus A380s to service, took delivery of two new Boeing 787 Dreamliners and added eight A321LRs.
Qantas Loyalty produced strong results to record an underlying profit of AU$451 million ($298m) on revenue of AU$2.19 billion ($1.44b). There are now more than 15.2 Qantas Frequent flyer members, with more than one million joining in the last financial year and 17% more members than in pre-pandemic 2019.
The Group finished FY23 with 336 aircraft: 126 in the Qantas fleet, 119 with QantasLink, 81 with the Jetstar Group and 10 flying for Qantas Freight.
“It’s because we’re in a strong financial position that we’re able to invest in new aircraft, new destinations and new training facilities – all things that will make us better in the future,” Joyce further added.
Qantas also placed firm orders for 12 Airbus A350 and 12 Boeing 787 Dreamliners as it plans to phase out the 28 Airbus A330 widebodies fleet. It has also acquired a number of purchase-right options that give it flexibility for the future retirement of the ten A380s now in the Qantas International fleet.
“Our people have done a superb job under very difficult circumstances. Today’s result means more than 21,000 non-executive staff will receive up to $6,000 worth of Qantas shares as a thank you for their part in our recovery, plus another $500 staff travel credit. This is in addition to a $5,000 cash payment to eligible employees as new enterprise agreements are finalised,” Joyce added.