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Australia’s flagship carrier Qantas Group is set to release its H1 FY23 earnings on Thursday, February 23. With the easing of COVID-19 travel restrictions, the company is expected to see an improvement in earnings due to a significant recovery in both domestic and international travel demand. The airline upgraded its profit expectations in November 2022, citing the strong demand for leisure travel in the domestic market. Qantas’s share price has already risen by 23% in the past year. Analysts anticipate strong H1 FY23 results and predict a share buyback of $400 million in the second half of the fiscal year.

Qantas’s Recovery Amidst a Challenging Time

Qantas Group, which is the world’s second-oldest airline, has been navigating a challenging time due to the COVID-19 pandemic. However, with the removal of movement restrictions both domestically and internationally, Qantas has been on a recovery path. The airline is expected to post an impressive performance in its H1 FY23 results, thanks to the ongoing recovery in the aviation industry.

Qantas’s Upgraded Profit Expectations

In late November 2022, Qantas announced an upgrade in its profit expectations for H1 FY23, citing the recovery in travel demand during the second half of 2022. The company projected an underlying profit before tax of between $1.35 billion and $1.45 billion, an increase of $150 million compared to the range outlined in early October.

The company stated that “consumers continue to put a high priority on travel ahead of other spending categories, and there are signs that limits on international capacity are driving more domestic leisure demand, benefiting Australian tourism.” This is good news for the airline, as its domestic leisure travel demand remains strong.

Analysts Predict Strong H1 FY23 Results

Analysts from Goldman Sachs see Qantas posting strong H1 FY23 results, given the upbeat results already reported by the airline’s international peers. Goldman expects Qantas to safely achieve its underlying profit before the tax target of between $1.35 billion and $1.45 billion. Morgan’s analysts also anticipate a $400 million share buyback to be announced at the H1 FY23 result.

Conclusion

Qantas Group is set to announce its H1 FY23 earnings on Thursday, February 23. The airline is expected to post an improvement in earnings due to the recovery in travel demand. Analysts are optimistic about the company’s performance, and predict a share buyback in the second half of the fiscal year. Qantas’s recovery is good news for the airline industry as a whole and reflects the resilience of the sector in challenging times.