The Qantas Group has announced strong financial results for the fiscal year ending June 30, 2024, demonstrating its commitment to balancing profitability with investments in customer experience, fleet renewal, employee benefits, and shareholder returns. The Group reported an impressive Underlying Profit Before Tax of $2.08 billion and a Statutory Profit After Tax of $1.25 billion.
While overall earnings saw a reduction compared to the previous year due to stabilized ticket prices and increased market capacity, the Group saw positive trends in several key areas. Qantas and Jetstar both experienced notable enhancements in operational efficiency and customer satisfaction, driven by strategic investments in optimizing operational processes, elevating food and beverage services, overhauling digital platforms, and expanding frequent flyer seat availability.
Fleet renewal was another key focus, with the addition of 11 new aircraft, including five Jetstar Airbus A321neo Long Range aircraft and two QantasLink A220s. These new additions not only offer improvements in operating costs and network flexibility but also enhance passenger comfort and contribute to lower emissions, aligning with the Group’s sustainability goals.
The Group also recognized the efforts of its employees by announcing a $500 travel voucher for 23,000 non-executive staff members, adding to the $500 voucher provided earlier in February. This initiative highlights the Group’s commitment to rewarding its workforce and fostering employee engagement.
Domestic Operations
The Group’s Domestic division generated $1.361 billion in underlying earnings, achieving an EBIT margin of 14 percent. This success was largely attributed to the complementary dual-brand strategy employed by Qantas and Jetstar. Jetstar expanded its domestic network by 15 percent, driven by growing demand for affordable travel options, while Qantas increased its capacity by 1 percent, benefiting from the resurgence of corporate and small business travel. The Group also saw continued expansion in the resources sector, with charter flight revenue rising by 18 percent year-over-year.
International and Freight Division
The Group’s International earnings softened to $755 million in Underlying EBIT, impacted by increased global airline capacity, which exerted downward pressure on ticket prices and led to a decline in freight yields. Despite this, the Group restored its international capacity to pre-COVID levels by May 2024, facilitated by the return of additional aircraft, including two more A380s. While the expanded flight schedule generated more revenue, it was counterbalanced by a projected rise in competitor capacity, resulting in an 11 percent decrease in unit revenue. However, this decline showed signs of stabilizing in the latter half of the year.
Qantas Frequent Flyer Program
Qantas Loyalty maintained its robust performance in FY24, achieving a record Underlying EBIT of $511 million while implementing significant enhancements for its members. Throughout the year, members set new records for both points earned and redeemed, including an unprecedented number of reward seats being booked. The program also saw a 14 percent increase in active membership compared to the previous year.
Financial Strategy and Shareholder Value
The Group’s financial strategy emphasizes investing in both operations and workforce to achieve positive outcomes for customers, society, and the environment, ultimately ensuring long-term returns for shareholders. The Group had a robust liquidity position totaling $10.2 billion by the end of the fiscal year, which included $1.7 billion in cash reserves, $1 billion in available undrawn credit facilities, and $7.5 billion in unencumbered assets. Net debt increased to $4.1 billion by June 2024, largely due to the acquisition of new aircraft, the execution of $869 million in share buy-backs, and the payment of bonuses to approximately 20,000 employees.
Aircraft Fleet Strategy
The Group is reaping the rewards of its largest fleet renewal initiative to date, having welcomed 11 new aircraft over the past year. This momentum will continue, with an additional 20 aircraft scheduled for delivery in the coming year and the return of the final two A380s anticipated over the next 18 months.
Customer and People
Since September 2023, Qantas has rolled out over 120 customer-focused initiatives and service improvements. These include efforts by a dedicated engineering team to update aircraft cabins, the introduction of baggage tracking systems, and the implementation of route-specific menu options. These enhancements have led to a significant boost in customer satisfaction and Net Promoter Scores across both Qantas and Jetstar’s domestic and international routes, as well as their Loyalty programs. The Group has also made significant investments in its workforce, focusing on hiring and training, particularly with the introduction of new aircraft creating more employment opportunities. Around 2,000 full-time positions were added during the year, including roles for pilots, engineers, cabin crew, and airport staff.
Environmental Responsibility, Community Engagement, and Corporate Governance
Sustainability remains a central focus for the Group as it strives to achieve its interim goal of a 25 percent reduction in net emissions by 2030, based on 2019 levels, and to reach net zero emissions by 2050. The Qantas Group is channeling substantial investments into decarbonization initiatives through its Climate Fund. This includes providing second-round funding for a sustainable aviation fuel (SAF) project in Townsville, allocating $75 million to an international SAF development fund, and dedicating $20 million to a fund that supports high-integrity, nature-based carbon projects within Australia.
Future Prospects
The Group anticipates steady travel demand across its portfolio, with strong revenue momentum as it moves into the first half of FY25. Management remains focused on meeting its performance targets, ensuring continued growth and financial stability for the Group.
