Qantas Airways has posted a $2.1bn annual underlying profit, down 16% from last year’s record result, in a tumultuous year marked by the early exit of its former chief executive and mounting public anger at its service and ticket policies.
Australia’s biggest airline said bookings and travel demand remained stable across its flying brands, although moderating air fares had eroded profits, especially on international flights.
The Qantas chief executive, Vanessa Hudson, said on Thursday the airline was using its strong balance sheet to renew its fleet.
“These investments come at a time when Australians are continuing to prioritise travel over other spending categories, with intention to travel over the next 12 months remaining high,” Hudson said.
Qantas’s profits fell from last year’s record highs but the financials were still strong on a historical basis.
The airline’s return-on-invested-capital measurement, which tracks how well a company generates profits, was now at 57.9%. Before the pandemic, it was usually less than 20%.
The volatile financial year included a decision by the former chief executive Alan Joyce to bring forward his exit date as the airline faced mounting public anger at poor service and refund policies.
Qantas also struck a deal with the competition regulator to pay a $100m penalty and pay $20m to customers in compensation, after conceding it misled consumers by selling tickets for thousands of flights it had already cancelled.
The airline also lost its high court bid to overturn a ruling that it illegally outsourced 1,700 ground handler jobs. It increased its provision by $70m in its accounts as it awaits a ruling on the compensation bill.
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When those costs are included in its results, shown in the statutory profit figures, Qantas’s profit was down more than 28% over the year to $1.25bn.
The company accounts show that earnings fell significantly in Qantas’s international business, which generated $556m in 2023-24, down from $906m a year ago when demand was surging, capacity lower and fares higher.
The Qantas domestic business generated $1.06bn in earnings, down from $1.27bn the prior year, while Jetstar increased earnings to $497m from $404m a year earlier.
