Qantas Reports 28% Profit Surge Amid Strong Travel Demand

Qantas Airways has announced a 28% increase in net profit, reaching $1.6 billion for the 2024–25 financial year, driven by robust demand in both international and domestic travel sectors. The airline's revenue rose by 8.6%, with underlying profit surpassing market expectations.

In a statement, CEO Vanessa Hudson attributed the strong performance to "ongoing strength in travel demand," noting that the international division's underlying earnings grew by 20%, while capacity increased by 6%. Budget carrier Jetstar also had a standout year, carrying a record 16 million passengers domestically and boosting underlying earnings by 55%.

Despite the financial success, Qantas faced legal challenges due to its unlawful outsourcing of ground handling work during the COVID-19 pandemic. The airline was ordered to pay a record $90 million penalty and $120 million in compensation to former employees who were unlawfully sacked. Hudson emphasized that these penalties were "absolutely not" considered a cost of doing business and assured that the company has learned from the incident.

Looking ahead, Qantas plans to commence ultra-long-haul flights from Australia's east coast to New York and Europe in 2027, as part of its strategy to upgrade its aging fleet of aircraft. The airline is also implementing all 32 recommendations from an independent governance review to improve its operations and prevent future issues.

Shareholders will receive a final dividend of 16.5 cents per share, along with a special dividend of 9.9 cents per share, reflecting the company's strong financial performance.

Despite the legal challenges, Qantas's financial results indicate a positive outlook, with plans for expansion and improvements in governance.