Qantas earnings: Alan Joyce celebrates as airline records $1.43billion profit after Covid losses

Qantas has posted an interim underlying pre-tax profit of $1.43 billion in its first return to profitability since the coronavirus pandemic began three years ago.

The record first-half result was at the high end of the airline’s forecast of underlying profit of between $1.35 billion and $1.45 billion in the first half of fiscal 2023.

Statutory net profit for the six months to June 30 was $1 billion, compared with a net loss of $456 million a year ago.

“When we restructured the business at the start of Covid, it was to make sure we could bounce back quickly when travel came back,” Joyce said Thursday.

“That is indeed what happened, but it is the strength of the demand that has driven such a strong result.”

The profit turnaround was achieved despite a 65 percent increase in fuel costs during the halving.

Qantas said domestic flight levels averaged 94 percent of pre-pandemic levels, while international capacity also doubled to 60 percent.

The national airline will not pay any interim dividend during the half, but announced a market share buyback of up to $500 million.

Qantas had $7 billion in legal losses due to the pandemic, as airlines around the world were hit by Covid lockdowns and international travel bans.

“This is a big turnaround considering the massive losses we faced just 12 months ago,” Joyce said.

He also touched on the high price of flights, which made cheap return tickets to London cost as much as $6,000 at Christmas.

“Rates have increased due to higher fuel costs, but also because supply chain and resource issues meant capacity has not kept up with demand.

“Now those challenges are starting to be resolved, we can add more capacity and that will put downward pressure on rates,” he said.