Qantas today reported its financial and operating results for the second half of 2022. The Australian carrier reported profits for the first time since the start of the COVID-19 pandemic after a «record half-year result», it said in a press release.
After nearly three years and 4.775 billion U.S. dollars in losses as a result of the impact of the health situation on the industry, the company posted a positive result between July and December, the first half of Australia’s fiscal year.
«The drivers of this result were consistently strong travel demand, higher yields and cost improvements from the Group’s one billion recovery programme that is nearing completion», the company explained.
«This is a huge turnaround considering the massive losses we were facing just twelve months ago», noted Alan Joyce, Qantas Group CEO. «When we restructured the business at the start of the pandemic, it was to make sure we could bounce back quickly when travel returned», he said. Besides, he assured that «it is the strength of the demand that has driven such a strong result».
Regarding the difficulties the industry is currently facing globally, Joyce said: «Fares have risen because of higher fuel costs, but also because supply chain and resourcing issues meant capacity has not kept up with demand». However, he stressed: «Now those challenges are starting to unwind, we can add more capacity and that will put downward pressure on fares».
Key Qantas financial and operating results for the second half of 2022
- Underlying profit before tax of 954 million U.S. dollars.
- Profit after tax of 683 million, the first positive half-year result since the start of the pandemic. In the same period of 2021, the company reported a loss of 311 million.
- Between July and December, capacity continued to recover and reached 94% of the 2019 total.
- Capacity on international flights reached a 60% recovery from 2019 values.
- Qantas’ domestic operations generated 536 million dollars, while Jetstar Airways’ business generated almost 89 million, with margins of 22% and 11%, respectively.
- Leisure demand continued to lead the recovery. Demand from corporate travellers remained strong.
- Fleet plan update, which included the conversion of nine purchase options for Airbus A220 aircraft into firm orders.
Projections for the near future
Qantas forecasts demand to remain strong through 2023 and 2024. The airline reported that it expects to exceed its pre-pandemic domestic capacity in the second half of this year and to recover up to 81% of the capacity on international services.
It also expects fares to moderate in the second half of 2023 as capacity increases, but still remain significantly above 2019 levels.
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