Qantas Group Sees $1.39B Profit Amid Strong Travel Demand
Qantas Group Reports Strong Half-Year Profit Amid Increased Travel Demand
Australia’s Qantas Group has announced an impressive underlying profit before tax of AUD $1.39 billion (USD $882 million) for the six months ending December 31, 2024. This marks an 11% increase from the same period last year, highlighting the airline’s recovery and resilience in the face of fluctuating travel demands.
In its financial results released on February 27, 2025, Qantas Group attributes this growth to robust corporate and leisure travel demand. The airline reported an Underlying EBIT of AUD $916 million (USD $581.80 million) for Group Domestic, with a 5% rise in unit revenue. Meanwhile, Group International earnings also increased by 5%, resulting in an Underlying EBIT of AUD $497 million (USD $315.67 million).
Qantas Group’s Financial Strength
Despite this strong performance, it’s worth noting that Qantas Group’s profits are still below its record high of AUD $2.08 billion (USD $1.32 billion) reported for the entire fiscal year of 2024. As of December 31, 2024, the company maintained a robust liquidity position, boasting over AUD $11.5 billion (USD $7.31 billion). This included AUD $2.3 billion (USD $1.46 billion) in cash, AUD $1.2 billion (USD $762 million) in committed undrawn facilities, and more than AUD $8 billion (USD $5.08 billion) in unencumbered fleet assets.
The airline’s success is attributed to its effective dual-brand strategy, catering to a wide range of customer segments. Both Qantas and Jetstar experienced increased profitability, serving nearly 10% more customers than in the previous year. Premium and corporate travel for Qantas remained robust, while Jetstar achieved a record number of passengers and a remarkable 54% increase in domestic earnings.
Fleet Expansion and Renewal
In a strategic move to enhance service and capacity, Qantas added 11 new aircraft and five mid-life aircraft during the reporting period. A significant highlight was the introduction of Jetstar’s new Airbus A321LRs and A320neos, expanding its fleet to 21 aircraft. Furthermore, Qantas is actively renewing its fleet, with five A220s in successful operation and plans for a comprehensive cabin overhaul across existing aircraft.
Qantas Loyalty also performed exceptionally well, driven by increased engagement and a noteworthy 11% growth in inflows from partners. In recognition of employee contributions, the airline rewarded 27,000 non-executive employees with a AUD $1,000 (USD $635.15) thank-you payment in December 2024.
Challenges on the Horizon
Despite these positive developments, Qantas faces challenges, including rising consumer price index (CPI) costs in airport and government charges, along with increased engineering expenses due to a constrained aviation supply chain.
In a noteworthy announcement, Qantas declared its intention to resume dividend payments to shareholders for the first time since FY19. This includes a base dividend of AUD $250 million (USD $158.79 million) and a special dividend of AUD $150 million (USD $95.35 million), both fully franked at 26.4 cents per share.
Looking Ahead
As Qantas looks toward the second half of the fiscal year, the airline expects strong travel demand to continue across its portfolio. Projections indicate that Group Domestic unit revenue could rise by 3–5% compared to the previous year, and net freight revenue is anticipated to be AUD $10–30 million higher in the latter half of FY25.
Interestingly, data from the Australian Competition and Consumer Commission (ACCC) revealed that Virgin Australia surpassed Qantas as Australia’s dominant domestic airline in 2024, carrying more passengers on internal flights.
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