‍DALLAS—The Qantas Group (QF) delivered strong earnings in FY24 while investing in customers, new aircraft, employee benefits, and shareholder returns.

The Group achieved an Underlying Profit Before Tax of A$2.08 billion and a Statutory Profit After Tax of A$1.25 billion for the year ending 30 June 2024.

Though overall earnings were reduced compared to last year as fares moderated with the return of market capacity, spending on customer initiatives increased, and freight revenue was reduced predominantly in the first half, Group Domestic unit revenue provided positive momentum in the second half, increasing to 2H23 levels.

Stable Outlook for Qantas

The Group is seeing stable travel demand across the portfolio with positive revenue momentum heading into 1H25. Group Domestic unit revenue is expected to increase by between 2 and 4 percent in the first half of the financial year compared to the previous year.

Group International unit revenue is expected to fall 7-10 percent over the same period as market capacity continues to be restored. 

However, this rate of decline is expected to slow in FY25. This unit revenue is expected to turn positive in the fourth quarter compared to the prior period. Net freight revenue in 1H25 is expected to be A$20-40 million higher than last year's first half.

Qantas and its low-cost subsidiary Jetstar saw significant improvements in operational performance and customer satisfaction across the year, driven by investments in its operations, enhanced food and beverage, an overhaul of Qantas’ digital platforms, and increased availability of frequent flyer seats.

“The investment in operational reliability and customer initiatives delivered a positive improvement in on time performance and customer satisfaction with Qantas ending the year as the most on time major domestic airline,” Qantas CEO Vanessa Hudson said.

Qantas Fleet Renewal

The Group is seeing the benefits of its most extensive fleet renewal program, with 11 new aircraft arriving over the past year. This will increase again, with 20 new aircraft due to arrive in the coming year and the return of the remaining two A380s over the next 18 months.

“Our strong financial performance and balance sheet will allow us to continue to invest in our largest ever fleet renewal program, which will benefit our customers and people, as well as delivering shareholder returns,” Hudson said.

The Group’s fleet renewal continued with 11 new aircraft arriving during the year, including five Jetstar Airbus A321neo Long Range aircraft and two QantasLink A220s, as capital expenditure increased to A$3.1 billion. The new fleet improves operating costs, network flexibility, passenger comfort, and emissions.

Due to continuous supply chain problems, QF has today confirmed that it will get its first Airbus A321XLR aircraft in April 2025, although with a few-month delivery delay.

The airline has also disclosed the items and cabin layout of the A321XLR, which will take the place of its Boeing 737 aircraft. The new long-range narrow-bodies would have 197 seats in a two-class arrangement, with 20 in business and 177 in economy.

Staff Merits, Sustainability

Qantas views its people as an asset. The Group intends to reward its employees because they are essential to the airline's provision of exceptional services. 

“I want to thank every one of our people for the professionalism, hard work and commitment to delivering for our customers,” Hudson said.

As part of recognizing its people's efforts, 25,000 non-executive employees will receive an A$500 staff travel voucher towards heavily discounted standby fares. This is in addition to an A$500 voucher provided to employees in February, bringing the total to A$ 1,000 for the year. 

Sustainability remains a priority for the Group as it takes action towards its 2030 interim target of 25 percent net emissions reduction (from 2019 levels) and 2050 net zero emissions target.

In FY24, Qantas renewed its agreement to purchase SAF for flights out of Heathrow for a third year and doubled the size of its corporate customer SAF program. The Group continues to advocate for the establishment of a domestic SAF industry, which has the potential to generate significant economic benefits for Australia, drive job creation, and contribute to national fuel security.

Furthermore, the Qantas Group has committed significant investments in decarbonization projects through its Climate Fund, including second-round funding for a sustainable aviation fuel (SAF) project in Townsville, A$75 million in an international SAF development fund, and A$20 million in a fund targeting Australian high-integrity nature-based carbon projects.