Qantas has upgraded its profit expectations for the first half of the 2023 financial year, citing strong post-pandemic travel demand.
The company, which only earlier this month was labelled Australia’s most disappointing, said on Wednesday they were expecting a net profit before tax of $1.35 to $1.45 billion in the first half of the 2023 financial year – a $150 million increase to the profit range from early October.
The growing profit expectations were made despite the extraordinary cost of fuel, which Qantas said was expected to hit $5 billion in the next financial year.
Qantas has upgraded its profit expectations for the first half of the 2023 financial year, the company announced on Wednesday. Picture: NCA NewsWire / Nicholas Eagar
The company said that would be a record high, despite the airline’s international capacity remaining around 30 per cent below its pre Covid level.
Qantas also said they expected net debt to fall to an estimated $2.3 billion.
“Consumers continue to put a high priority on travel ahead of other spending categories and there are signs that limits on international capacity are driving more domestic leisure demand, benefiting Australian tourism,” the company said.
Last month, the company said strong travel demand was accelerating Qantas’ recovery from Covid, and announced a $200 million investment in the airlines “operational resilience,” such the rostering of new crew and training new staff.
Qantas Chief Executive Alan Joyce. The airline has credited strong demand for a better than expected profit expectations. (Photo by Martin Ollman/Getty Images)
The news represents a welcome turnaround in public relations for the company, after Choice labelled it the country’s worst company in its annual “Shonky” award.
On Tuesday, The Australian reported that Qantas’ cancellation rate had fallen in October to 1.2 per cent, a better performance than rivals Virgin Australia, which binned 3.6 per cent of flights.
Despite Qantas’ strong results, the cost of flying continues to soar above pre-pandemic levels.
A one-way Sydney to Melbourne Qantas flight this week is currently going for around $647, while a one-way Qantas flight from Sydney to Perth is currently going for around $859, according to Flight Centre.
Read related topics:Qantas