Australia’s flagship airline, Qantas, announced a staggering profit of $1.6 billion on Thursday, marking a significant rebound in the aviation industry following the COVID-19 pandemic. This comes as a contrast to the $4.5 billion in losses suffered by the airline in the previous three years. The resurgence in air travel played a crucial role in Qantas’ financial success, bolstered by their commendable on-time performance and low flight cancellation rates.
Aug. 24 (UPI) — The recovery of Qantas’ profits can be attributed to their strong position within the industry and their commitment to providing exceptional service. Qantas CEO, Alan Joyce, expressed his satisfaction with the results in a news release, wherein he also announced a $322 million share buyback and the acquisition of 24 new wide-body aircraft.
Qantas’ profitability was further supported by a $644 million recovery plan and a remarkable 132% increase in flying from 2021-22. The airline’s revenue more than doubled, reaching $12.8 billion, compared to $5.9 billion in the previous year, owing to the high demand for travel.
“These impressive results demonstrate a remarkable turnaround in our financial standing and level of service over the past year. Flight disruptions have returned to pre-COVID levels, and we have shifted from significant losses to a robust profit and a pipeline of investments worth billions of dollars,” stated Joyce.
“During this period, we successfully operated nearly 70 billion additional seat kilometers and transported double the number of passengers compared to the previous year. The demand for travel remains incredibly strong, and Qantas has responded by increasing our aircraft fleet and expanding our routes network to meet this demand,” he added.
The other divisions of the Qantas Group, including QantasLink, Jetstar, and Qantas Freight, also made noteworthy contributions to the airline’s success, with domestic flights within Australia accounting for over half of the group’s underlying profit of $1.6 billion.
Qantas’ loyalty program, supported by more than 15 million frequent flyers, generated a profit of $298 million from a total revenue of $1.4 billion.
Joyce emphasized that customer satisfaction levels had significantly improved according to data analysis. In an effort to further appease its customers, Qantas simultaneously launched a sale offering 1 million seats to 90 destinations on the same day as the profit announcement.
The airline has placed orders for 12 Airbus 350 aircraft and 12 Boeing 787 “Dreamliners,” aligning with its commitment to replace older aircraft in their current fleet of 336 domestic and international planes with a total order of 170 new aircraft.
