Qantas, Australia’s national carrier, has reported a 28 percent decline in profit for the 2024 financial year, with after-tax profits totaling $1.25 billion. This decrease in profit can be attributed to several factors, including increased competition and issues with the competition regulator. However, Qantas subsidiary Jetstar saw record sales during this period, achieving its best-ever result. The demand for low fares rose, leading to increased revenue and profits for Jetstar.
Vanessa Hudson, who took over as CEO of Qantas from Alan Joyce, has focused on improving customer service as a response to the challenges faced by the airline. Despite the decline in profit, Hudson emphasized the strong financial performance of Qantas, which will allow the company to continue investing in their largest-ever fleet renewal program. Qantas delivered a total of 16 planes in the 2024 financial year, including new aircraft for both Qantas and Jetstar.
Qantas has also made efforts to enhance the travel experience for customers. They have introduced the Classic Plus program, which offers millions of frequent flyer seats, driving member engagement and strong earnings for Qantas Loyalty. Additionally, Qantas has updated its app, introducing features such as flight status and baggage tracking, and has utilized conversational artificial intelligence technology to improve customer interactions. Jetstar’s app has also been improved with faster online check-in, and the airline has launched Apple Pay and Tap and Go on their planes.
Despite the challenges faced by the aviation industry due to the COVID-19 pandemic, Qantas has found that travel desires among Australians remain stable. According to an investor presentation, 49 percent of Australians expressed a wish to fly internationally between June and August, while 61 percent expressed a desire to travel interstate during the same period. Qantas expects domestic revenue to rise by 2 to 4 percent in the first half of the financial year, but international revenue is predicted to decline by 7 to 10 percent due to capacity restoration.
In terms of sustainability, Qantas has outlined its commitment to climate action. The airline has invested over $100 million in a climate fund, including $75 million for the development of Sustainable Aviation Fuel. Qantas has also purchased carbon offsets and donated to environmental charities.
Overall, Qantas reported an underlying profit before tax of $2.08 billion for the 2024 financial year. Domestic revenue rose by 4 percent, while international revenue increased by 12 percent. However, underlying earnings before interest and taxes fell for both domestic and international operations. The Qantas Loyalty program delivered strong revenue growth, and Jetstar saw a boost in both revenue and earnings.
Despite the challenges faced by the aviation industry, Qantas remains optimistic about the future. They expect domestic revenue to continue rising, albeit at a slower rate, and predict a slowdown in the decline of international revenue in the coming years. Qantas shares were up 0.71 percent at the close of trading, indicating investor confidence in the company’s performance. Qantas did not declare a dividend for shareholders, but they have completed share buy-backs worth $869 million, with more to come in the first half of the 2025 financial year.
