Strong demand accelerating airline’s post-pandemic recovery.
Qantas has just issued an ASX update, outlining a range of measures in response to ongoing strong travel demand. Based on forward bookings, current fuel prices and latest assumptions about the second quarter of the financial year, the Group expects its Underlying Profit Before Tax to be $1.2 billion to $1.3 billion for the six months to 31 December.
Domestic travel demand remains strong across all categories, and “yields from international markets are particularly strong, but are expected to moderate as Qantas and other carriers steadily increase capacity”.
The company continues to invest in additional staffing such as rostering extra crew, training of new recruits and overtime, while a “conservative approach to scheduling” leaves about 20% of capacity in reserve which can be called upon to reduce delays and cancellations.
A new wages policy will see annual pay increases adjusted upwards from 2% to 3%, with the increase automatically applying to about 5,000 employees who had already agreed to the 2% uplift, while about 3,600 staff who joined the Group after the cut-off date for the retention program in mid-2021 will now receive 250 share rights to “recognise their role in the accelerated recovery”.
CEO Alan Joyce said “it’s been a really challenging time for the national carrier, but today’s announcement shows how far we’ve come”.
More details in today’s issue of Travel Daily.