Year-on-year profits fell due to moderating fare levels, with domestic fares down 8% and international down 10%.
The Qantas Group has reported a $2.08 billion full-year Underlying Profit Before Tax and Statutory Profit After Tax of $1.25 billion, which it says reflects the return of market capacity and the moderation of airfares.
Underlying Profits don’t include the $100 million settlement with the ACCC concerning the recent ‘ghost flights’ scandal.
The result is a 16% drop on the prior year, with the company citing $3.1 billion in CapEx spending on new aircraft, increased spending on more than 120 customer initiatives and a reduction in freight revenue cited as key reasons behind the fall.
Qantas said it achieved “significant improvements” in operational performance and customer satisfaction, thanks to “an overhaul of Qantas’ digital platforms”, combined with enhanced food and beverage and greater availability of Classic Reward frequent flyer seats.
“Restoring trust and pride in Qantas as the national carrier is our priority, and while there’s more work to do, we’ll get there by delivering for our customers and people consistently into the future,” said Qantas Group CEO, Vanessa Hudson.
As a reward for their efforts, Qantas will provide 23,000 non-executive employees with a second $500 staff travel voucher on top of one provided in Feb this year.
More details in today’s issue of Travel Daily.