Qantas Group’s full year results reveal hit in profits

Qantas Group has posted its first full year results with Vanessa Hudson at the helm, with the new CEO unveiling a welcome new addition for flyers.

Qantas has posted an underlying profit before tax of $2.08 billion for the financial year, down 16 per cent on the year prior.

It had a statutory profit after tax of $1.25 billion for the 2023-24 financial year, which is a 28 per cent decrease.

Its net debt rose to $4.1 billion, which the company said was within the bottom half of the target range ($3.9 – $4.9 billion).

It is the company’s first full year results with Vanessa Hudson at the helm.

The new chief executive described the results as “strong” but acknowledged they were lower, attributing the drop to lower airfares and lower freight revenue, as well as greater investment in customers ($230 million).

Ms Hudson said it was crucial to “get the balance right” between customer and employee satisfaction, and delivering for shareholders, when speaking to the media on Thursday morning.

She said both Qantas and budget airline Jetstar had seen “significant uplift in satisfaction”.

Last year, Qantas posted an underlying profit before tax of $2.47 billion for the 2022-23 financial year and a statutory profit after tax of $1.74 billion – which was a return to profit after three years and $7 billion of cumulative statutory losses.

The Qantas Group has posted an underlying profit before tax of $2.08 billion for the financial year. Picture: NCA NewsWire / David Swift

“Our focus this year has been getting the balance right in delivering for customers, employees and shareholders while building a better, stronger Qantas Group,” Ms Hudson said in a statement earlier on Thursday.

“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.”

Ms Hudson said Jetstar, which grew its domestic network by 15 per cent year on year, delivered its highest result with “increased demand from price-sensitive leisure travellers”.

She said Qantas “benefited from increased corporate and resources travel, and ongoing high demand for international premium seats”.

Qantas chief executive Vanessa Hudson and chief financial officer Rob Marcolina speaking about the results. Picture: NewsWire / John Appleyard

Qantas to dish out extra $500 to thousands of workers

Qantas announced 23,000 non-executive employees, who are already entitled to discounted standby fares, would receive a $500 staff travel voucher.

This is in addition to a $500 voucher provided to employees in February.

Ms Hudson said they were “the heroes behind this result”.

“I speak a lot to customers on planes and in airports, and what I hear and what they say to me is that things feel different,” Ms Hudson said.

“And that is actually a reflection of the incredible work of our people.”

A $400 million on-market share buyback was also announced.

Qantas Group chief financial officer Rob Marcolina said: “As we look into our financial framework we are absolutely always looking at the most efficient way to distribute funds back to our shareholders.

“We have also announced today our intent is that we will be looking at a base dividend as we go into the second half and looking to implement that.”

Ms Hudson added delivering for customers, employees and the business was the best outcome for shareholders because it creates sustainable profit growth.

Pilots have begun training ahead of the A321XLR launch on an AE 7000XR Series A320 simulator that was specifically shipped to Sydney from Montreal, Canada. Picture: NewsWire / John Appleyard

Qantas to roll out in-flight Wi-Fi on international fleet

International travellers will be pleased to know Ms Hudson confirmed “fast and free” in-flight Wi-Fi is on track to roll out at the end of the year.

Select international flights currently have Wi-Fi but only while flying over Australia.

“We are investing in in-flight Wi-Fi so we’ll see that start to roll out on our international fleet at the end of this year,” Ms Hudson said.

“But we are also investing in new cabin interiors, new lounges and also new features on our mobile app.”

In February, Qantas had revealed its A330, B787 and A380 fleets would progressively be retrofitted to enable connection, and the A330-200LR installation program would be built into the existing heavy maintenance schedule. Installation programs for the B787, A380 and A330-300s will commence from 2025 and new aircraft currently on order, including A350 and B787 fleets, will already be Wi-Fi capable when delivered.

Qantas also revealed on Thursday that pilots had begun training ahead of the launch of Australia’s first “longest-range” Airbus A321XLR aircraft, which will allow for more non-stop routes.

The aviation group will add 28 of these aircraft as it progressively replaces its Boeing 737s over the next 10 years.

The first of the planes is set to be in circulation in April next year.

Mr Marcolina said the new aircraft would open more domestic opportunities as well as routes into Southeast Asia, plus “exciting” plans for direct routes between Perth and India.

Vanessa Hudson and Alan Joyce last year at the Qantas Group announcement of its full year results for the 2023 financial year. Picture: NCA NewsWire / Christian Gilles

Ms Hudson, the group’s former chief financial officer, took over the top job from Alan Joyce in September last year when he brought forward his retirement two months early so the airline could “move ahead with its renewal” under new management.

She promised to put customers first in efforts to repair the airline’s reputation.

Earlier this month it was revealed Mr Joyce would have his bonuses slashed by more than $9 million and that the airline had committed to implementing all 23 recommendations made in its review of key governance matters.

Mr Joyce’s bonuses were withheld amid mounting pressure from investors following a string of controversies, including the illegal sacking of 1700 workers, the selling of tickets on already cancelled flights and allegations of anti-competitive behaviour.

The airline will be pay about $20 million in compensation to customers affected by its flight cancellation policy, after admitting it had misled passengers. This is in addition to a $100 million civil penalty.

The Australian Competition and Consumer Commission (ACCC) had launched legal action against the airline in August 2023, claiming it sold tickets for 8000 “ghost flights” (already-cancelled flights) between May and July 2022.