Qantas CEO weighs in on DEI war as company posts $1.39 billion profit in half yearly results

Qantas CEO Vanessa Hudson has been asked about controversial DEI policy changes as the company posts its half yearly results.

Qantas CEO Vanessa Hudson has thrown her support behind diversity, equity, and inclusion policies as massive international companies scale back their efforts amid Donald Trump’s anti-DEI crusade.

In the latest development overnight, the US President demanded Apple “get ride of DEI rules” and called it a “hoax”, after the company’s shareholders voted to reject an anti-DEI proposal.

Mr Trump had signed executive orders that seek to end DEI programs in US government agencies and educational institutions on his first day in office. That has since hit a roadblock with a US judge temporarily blocking parts of the directives.

Speaking at the announcement of Qantas Group’s strong half yearly results on Thursday, Ms Hudson was asked if she planned to make any changes to the company’s inclusion and diversity policy.

Her answer was firmly in support of the policy remaining in place without change.

“The one response that I would give to that is that at Qantas we want to build the best aviation employment and place to work, and to do that, we believe strongly that that comes from a culture that is inclusive, a culture that builds a sense of belonging and a culture that supports and grows high performance,” Ms Hudson said.

“We will not be changing our policy because we believe our policy has been good for business and will continue to be good for business.

“We want to be the employer of choice and we see the diversity and inclusion is a key part of that.”

Qantas is standing by its diversity and inclusion policy. Picture: NewsWire / John Appleyard

Qantas Group’s half yearly results reveal $1.39 billion profit

Qantas posted an underlying profit before tax of $1.39 billion for the first half of the financial year.

It is a 11 per cent increase compared to the same period of FY24.

The half yearly report ending December 31 also revealed the airline had a statutory profit after tax of $923 million, an increase of 6 per cent.

Its overall net debt remained at $4.1 billion as at 31 December 2024, and the company said it was expected to be at or below the middle of the target range for FY25, which is forecast to be $4.7 to $5.8 billion by the end of the financial year.

The airline cited its dual brand strategy with Qantas and Jetstar for the strong results, explaining premium and corporate travel remained strong for Qantas while Jetstar carried a record number of customers.

Qantas Group said it made a $1000 thank you payment to 27,000 non-executive employees in December after improved customer satisfaction.

Qantas has posted its half yearly results. Picture: NCA NewsWire / David Swift

For the first time since FY19, Qantas Group will pay dividends to shareholders, with a $250 million base dividend and a $150 million special dividend, which are both fully franked (26.4 cents per share).

“Our financial strength means we are now in a position to pay our shareholders dividends for the first time in almost six years,” Qantas Group CEO Vanessa Hudson said.

She said “rebuilding trust” in the airline continues to be management’s focus.

“We’re seeing progress from the investments we are making for our customers and people but we know there’s more work to do to consistently deliver in the moments that matter,” Ms Hudson said.

As well as carrying a record number of customers, Jetstar delivered a 54 per cent increase in domestic earnings compared to the previous year.

The budget airline grew its international capacity in and out of Australia by 26 per cent.

Qantas also announced on Thursday that 42 Boeing 737 aircraft will receive a full cabin overhaul, with new business and economy seats, larger overhead lockers, new carpets, sidewalls and mood lighting, and free Wi-Fi.

The 737s operate domestically and to short-haul international destinations like New Zealand, Bali, Fiji and Vanuatu. The first refurbished aircraft is expected to start flying from 2027.

Jetstar carried a record number of passengers. Picture: NCA NewsWire / David Swift

Ms Hudson took over as CEO in September 2023 after longstanding boss Alan Joyce brought forward his retirement by two months so the airline could “move ahead with its renewal” under new management.

Qantas Group posted its first full year results with Ms Hudson at the helm in August last year.

The company posted an underlying profit before tax of $2.08 billion for the 2023-24 financial year, down 16 per cent on the year prior. It had a statutory profit after tax of $1.25 billion, which was 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).

Ms Hudson had said “restoring trust and pride in Qantas as the national carrier” was the company’s priority.

Also in August last year, 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. In Thursday’s update, Qantas said the majority of actions have now been completed and the remainder are underway.

Mr Joyce’s bonuses were withheld amid mounting pressure from investors following a string of controversies.

Qantas will have to pay 1800 former workers a total of $120 million after it was found to have illegally sacked and outsourced baggage handlers during the pandemic, ending a four-year legal saga and landmark industrial relations battle. The airline confirmed details of its settlement with the Transport Workers Union in a statement published to the ASX in December last year.

Qantas will also pay $120 million in fines and compensation for offering tickets on “ghost flights” (already-cancelled flights) between May and July 2022.

For the 2022-23 financial year, Qantas posted an underlying profit before tax of $2.47 billion 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.