Qantas has reported a profitable half-year with a pre-tax profit of $1.39 billion, marking an 11% increase from the same period last year. This improved financial performance is credited to a 10% rise in customer numbers, with shareholder dividends amounting to hundreds of millions derived from the profits.
The major factor contributing to this profit is the strong domestic market, particularly the performance of Qantas’s subsidiary, the budget airline Jetstar. Jetstar has seen a 35% increase in earnings across all routes and a 54% increase domestically, despite an increased cost of living, which may impact consumer spending.
CEO Vanessa Hudson acknowledged the progress made in improving customer service and financial strength but also recognized the ongoing effort required to regain public trust after a period of scandals and service problems.
Qantas has announced its first dividend payment since 2019, with $250 million in base dividends and $150 million in special dividends, fully franked.
The airline has increased its capacity on international routes, resulting in a 6.6% average reduction in air fares and a 2.5% increase in demand for premium cabins. Hudson highlighted the importance of Jetstar in making travel more affordable for Australians.
Looking forward, Qantas is optimistic about the continued demand for travel from both leisure and corporate customers, even as they criticize the government’s same-job, same-pay legislation for its negative impact on wages costs. The airline also anticipates spending $5.22 billion on fuel and expects its net debt to remain at $4.1 billion.
Source: https://www.theguardian.com/business/2025/feb/27/qantas-1-39bn-profit-half-year-results-jetstar
