Qantas Confirms Enormous $2.5bn Full Year Profit

Republished By Plato

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Victor Pody shot Qantas’ latest 787-9 VH-ZNL arriving at Melbourne in May

Qantas has capped one of the most lucrative years in its history by announcing a huge profit before tax of $2.465 billion for the last financial year.

The widely expected news comes after it recorded a record $1.428 billion half-year profit, which it put down to better-than-expected demand for flying post-COVID.

In a statement to the ASX, Qantas said the profit was driven by its domestic operation returning to 96 per cent of pre-COVID levels and its international services back to 67 per cent.

It came despite “recovery challenges” such as aircraft delays, supply chain issues and “constrained labour availability and training”.

The money will likely help fund its huge fleet renewal program, dubbed Project Winton, which means it will either buy or have purchase rights to up to 299 narrow-body and 12 wide-body aircraft for delivery over the next decade.

Project Winton is an Airbus-heavy plan, which includes nine more A321s that Qantas will then convert into freighters; 12 Airbus A350-1000 jets to launch Project Sunrise; and 20 Airbus A321XLRs and 29 A220-300s to fly its domestic routes.

There is also an option to purchase up to 85 additional Airbuses through to 2034.

The news follows the airline announcing this week that it will add 250,000 international seats to its network as it approaches 100 per cent of pre-COVID-19 levels, which it expects to reach in March 2024.

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The Flying Kangaroo will use larger aircraft on several routes, including its three new 787 Dreamliners and its returned A380s, as well as increasing frequency on other routes. The carrier is currently at around 80 per cent of its pre-pandemic international traffic.

Qantas will first replace 737s with A330s on its Sydney-Bali route from October. Afterwards, starting in July 2024, Qantas A380s will operate for the first time between Sydney and Johannesburg; more A380 flights will increase capacity between Melbourne and Los Angeles by 20 per cent; and flights between Sydney and LA will increase from eight to nine per week using both 787s and A380s.

Finally, from August 2024, the Sydney–Auckland–New York route – which launched using 787s in June this year – will go from four per week to daily.

The increased frequency adds to previously-announced Qantas international routes to launch in October, including new services from Brisbane to Honiara and Wellington, and the resumption of services between Sydney and Shanghai after three years.

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