Qantas has delivered a bumper $1.46bn half-year underlying profit as travellers shrug off cost-of-living pressures to travel within and outside Australia.
Australia’s biggest airline credited robust customer demand, new routes and increased flight frequency to “Japan, Bali and across the Tasman”, and more fuel-efficient new aircraft for the strong result, up 5% from a year ago.
The chief executive, Vanessa Hudson, is overseeing Qantas’s most expansive fleet-renewal program ever, balancing the huge expenditure required after a prolonged period of under investment.
Qantas is replacing its ageing domestic fleet and purchasing long-range planes.
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Hudson said on Thursday the new aircraft were “delivering better fuel efficiency, lower maintenance costs, and providing the flexibility to open new routes”.
She said customer satisfaction levels were also rising due to the new planes.
The airline lifted revenue across its operations, with its budget carrier Jetstar once again the standout performer.
Revenue at Jetstar increased by 8%, and its profit margins widened.
Spending reports have consistently found that while many Australians are cutting back on discretionary items due to high living costs, travel remains a priority.
Qantas expects strong traveller demand to continue, while noting it will monitor the “evolving economic environment in the US”.
While the US market has been a challenge for Qantas, Hudson said she was not aware of any customers being turned away at US entry points due to their social media activity.
“I don’t think that that is at all an issue that we are seeing for our customers,” Hudson said.
The airline is rewarding shareholders with an interim 19.8c dividend per share, representing a 20% increase, and share buyback. Buybacks are used to reduce the number of shares in a company, often resulting in a lift in share price.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: theguardian.com
