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."

Vietjet proving a serious success story

The Australian aviation industry may be a tale of woe right now, but in Asia, airlines are reporting impressive profits. 

The closure of Bonza, and Rex being placed into administration impacted flyers in Australia, but successful Vietnamese airline Vietjet saw its revenue grow by 15% in the first half of 2024. 

The independent carrier also reported profits 21% higher than its annual target and recently flew its 200 millionth passenger.

Founded in 2007, tt was the first privately owned airline to be established in Vietnam.

In the first six months of 2024, Vietjet’s operations outperformed pre-pandemic 2019 with the airline transporting a total of 13.1 million passengers on 70,154 safe flights from January-June 2024.

In the second quarter of the year, Vietjet reported a pre-tax profit of VND517 billion (approx. US$20.57 million). 

Vietjet is now operating over 149 routes across Vietnam and internationally, including 38 domestic and 111 international routes.

In Australia, Vietjet has added two routes from Hanoi to Melbourne and Sydney, bringing its total number of routes between Vietnam and Australia to seven. 

Together with the first five routes from Ho Chi Minh City to the five largest cities in Australia (Adelaide, Brisbane, Melbourne, Perth, and Sydney), Vietjet is now the airline operating the most routes between Vietnam and Australia with 58 flights per week.

Vietjet is offering a week-long promotion from August 2-8 (GMT+7), with tickets priced for as low as $199 on international routes connecting Australia and Vietnam and other Vietnamese domestic routes. 

The travel period is from September 4, 2024, to May 222, 2025. The availability of discounted seats varies depending on the route and travel dates.

* Check out my report on the Vietjet experience coming up in October. 

See www.vietjetair.com

Under-fire Qantas predicts a massive profit

It may have been under fire for poor customer service and a plague of late and cancelled flights but Qantas announced today that it expects an underlying profit before tax of between $1.2 billion and $1.3 billion.

So I'm sure they will be giving back the taxpayer money they were given during Covid. Only joking.

In a press release issued this morning, Qantas insisted operational performance continues to improve with the airline back at or around pre-Covid service levels in first half of October.

Strong travel demand is accelerating the Qantas Group’s recovery, the airline said.

"Based on forward bookings, current fuel prices and latest assumptions about the second quarter, the group expects underlying profit before tax of between $1.2 billion and $1.3 billion for the first half of FY23," the statement said.

"This follows five consecutive halves of heavy losses due to the pandemic and cumulative statutory losses of $7 billion."

Both Qantas and JetStar have announced sale fares starting today, with more than 1 million fares across 67 domestic destinations starting at $35 one-way.

Qantas Group CEO Alan Joyce, said: “It’s been a really challenging time for the national carrier but today’s announcement shows how far we’ve come.

“Since August, we’ve seen a big improvement in our operational performance and an acceleration in our financial performance.

“It’s clear that maintaining our pre-Covid service levels requires a lot more operational buffer than it used to, especially when you consider the sick leave spikes and supply chain delays that the whole industry is dealing with. That means having more crew and more aircraft on standby and adjusting our flying schedule to help make that possible, until we’re confident that extra support is no longer needed.

“Qantas’ operations are largely back to the standards people expect, and JetStar’s performance has improved significantly in the past few weeks and will keep getting better with the extra investments we’re making."

Image: Qantas