Qantas rebuild delivers massive profits

You know all those complaints about Qantas, and angry people threatening to boycott the airline?

It has made zero impact on the Qantas Group bottom line. 

Qantas today announced an Underlying Profit Before Tax of $1.39 billion, an increase of 11%, and a Statutory Profit After Tax of $923 million, an increase of 6%, for the six months ended December 31, 2024.

The Australian flagship airline said the performance was driven by the strength of the Group’s dual brand strategy with demand for travel remaining strong across all customer segments. 

Qantas and Jetstar’s domestic and international businesses delivered increased profitability, carrying almost 10% more customers.

Premium and corporate travel remained strong for Qantas while Jetstar carried a record number of customers in a high cost of living environment, with around one in three passengers flying on a ticket that cost less than $100.

The Group continues to invest in renewing its fleet with 11 new aircraft and five mid-life aircraft arriving in the half. 

The investment in new aircraft will be complemented by a significant cabin overhaul across existing aircraft to improve the flying experience for customers, Qantas said in a statement. 

New investment announced today will see 42 Qantas Boeing 737 aircraft fitted with new cabins including next generation business and economy seats and larger overhead lockers. 

“The Group’s performance highlights the benefits of having both a premium and a low fares airline and a strong loyalty program," said Qantas Group CEO Vanessa Hudson.

“With a growing fleet of new aircraft, Jetstar went from strength to strength delivering a better experience for customers and an improved financial performance. Importantly, Jetstar was able to help more Australians take a holiday for less.

“Qantas domestic revenue grew strongly and, like Jetstar, will see significant benefits as its fleet renewal ramps up, starting with the arrival of the A321XLR in the coming months.

“We’re seeing progress from the investments we are making for our customers and people but we know there’s more work to do to consistently deliver in the moments that matter. This is a key part of rebuilding trust and continues to be our focus."

Major airlines continue to fly high

Two of the world's major airlines are thriving in difficult economic times with Etihad and Singapore Airlines this week reporting impressive profits.

Middle East-based Etihad Airways posted its best-ever profit for the full year 2024.

It achieved a record AED 1.7 billion ($476 US million) profit.

That marked a third consecutive year of profitability and a tripling of profit from 2023, news portal Travel Mole reported.

The airline saw growth across all metrics and achieved operational efficiency improvements.

Etihad carried 18.5 million passengers in 2024, a 32% increase.

In 2024, the airline expanded its operations to over 1,700 weekly flights and increased frequencies on 25 routes over the past two years.

It also launched more than 20 new destinations, including Boston, Jaipur, Bali, and Nairobi.

“Looking ahead, I am confident we will continue to be a financially strong airline contributing to the long-term prosperity and success of the UAE," said CEO Antonoaldo Neves.

Singapore Airlines Group (SIA), meanwhile, posted 3.3% growth in the quarter to December 31, lifting operating profit to $629 US million.

This is the highest quarterly revenue on record passenger carriage, despite declining yields due to stiffer competition.

Group revenue was a record $5.2 billion for the three months, up $137 million.

Farewell to a one-time heavyweight charge card

Once upon a time there was a fourth global heavyweight credit/charge card.

There was Visa, Mastercard, American Express and Diners Club.

I had a Diners Club card for years. It had a certain caché, like an Amex Platinum card.

But Diners failed to keep pace with changing markets and became accepted in fewer and fewer shops and hotels.

I probably gave mine up 25 years ago,

Diners Club this week announced it is exiting the Australian market after almost 70 years.

A statement on the brand’s website says: “As of 15 April 2024, Diners Club will no longer offer Diners Club Business Cards issued in Australia.”

Full details at https://dinersclub.com.au/corporate.htm

It will continue to operate in other markets.

Members with Diners Club Rewards will have until July 30 to redeem or transfer their rewards balance, after which any unclaimed points will be forfeited, the website says.

American Express fails the common sense test

 

American Express take a bow. 

AmEx joins my list of major corporations that have failed to deliver even basic customer service in 2022. 

You'd think with technology improving in leaps and bounds that these big companies would be improving their offerings. Yet customer service varies from pathetic to non-existent. 

Among the major companies that have completely failed this year are Air Canada (incompetent beyond belief), and Qantas/nib travel insurance (ridiculously slow and deliberately obstructuctive). 

Throw in the Westin Harbor Castle Hotel in Toronto with its lamentable under-staffing and the inability of AirAsia to resolve issues with its absurdly named SuperApp, and I had plenty of issues with big companies during the year. 

But American Express must take the annual award for corporate stupidity. 

My monthly statement arrived today (December 28). And it must be paid by December 30, or I face a financial penalty for late payment. As AmEx puts it: "To minimise further interest charges". Even though I am actually not in arrears. 

But I have two days to pay, which is not only absurd, but you would think is also illegal. 

What a pity their "membership benefits" do not include some common sense. 

All those highly paid operatives and high-tech computer systems and it was beyond these boffins to send out their statements before the Christmas period, or to extend the payment period. 

Or perhaps no one told them that Australia Post takes a few days off during the holiday. 

Or maybe, which I strongly suspect, they simply don't give a shit. What a bunch of arsehats.