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Qantas Group has reported a significant financial milestone, posting an Underlying Profit Before Tax (UPBT) of $1.39 billion, an 11% increase, and a Statutory Profit After Tax of $923 million, marking a 6% rise for the half-year ending December 31, 2024. These results reinforce Qantas’ strong market position, underscoring the effectiveness of its dual-brand strategy and unwavering consumer demand across all travel segments.

Surging Travel Demand and Record Passenger Numbers

The airline’s performance was fueled by strong travel demand, with Qantas and Jetstar transporting nearly 10% more passengers than the previous year. Premium and corporate travel continued to thrive, solidifying Qantas’ foothold in the high-end travel market. At the same time, Jetstar reached record-breaking passenger volumes, offering budget-friendly options for cost-conscious travellers.

Notably, one in three Jetstar passengers flew for less than $100 in a time of increased living costs, demonstrating the airline’s commitment to affordability.

Fleet Expansion: Qantas and Jetstar Usher in a New Era of Aviation

Qantas Group is investing heavily in fleet renewal, with 11 new aircraft and five mid-life aircraft arriving during the reporting period. A major highlight has been the introduction of Jetstar’s Airbus A321LRs and A320neos, which are now 21 aircraft strong. These aircraft significantly improve fuel efficiency, expand network capacity, and enhance customer satisfaction.

Meanwhile, Qantas’ transition to next-generation aircraft has begun, with five new A220s in operation. While early adoption costs momentarily offset their benefits, these aircraft promise long-term efficiency and passenger comfort gains.

Upcoming investments include:

42 Boeing 737 aircraft will receive complete cabin upgrades, featuring next-generation Business and Economy seats and larger overhead lockers.
The arrival of the first A321XLR in June 2025 bolstered Qantas’ domestic and international route flexibility.
Retrofitting existing aircraft with modern interiors and passenger enhancements.

Loyalty Program Expansion: Record Membership and Enhanced Rewards

Qantas Loyalty continues to be a pillar of success, achieving an 11% growth in active membership, reaching 17 million members. The program’s financial performance was fueled by strong partner engagement and increased cash inflows.

Key developments include:

A 10% rise in earned points, driven by financial services, retail partnerships, and insurance collaborations.
A 6% boost in points redemption, aided by an increase in Classic Flight Rewards and the successful launch of Classic Plus, has added 20 million new reward seats to the program.

Shareholder Dividends Return After Six-Year Hiatus

For the first time since FY19, Qantas rewards its shareholders with a $250 million base dividend and an additional $150 million special dividend, fully franked at 26.4 cents per share.

The airline has also maintained a net debt of $4.1 billion, underscoring financial stability while continuing its on-market share buybacks and investments in fleet growth.

Operational and Customer Experience Enhancements

Over the past 18 months, Qantas and Jetstar have rolled out substantial improvements to enhance the customer journey. These include:

Upgraded lounges in Adelaide and Broome.
More flexible flight credit policies.
Improved bag tracking via Apple’s ‘Share Item Location’.
Faster digital check-ins and seamless online payment systems.

Sustainability and Corporate Responsibility

Qantas remains committed to its 2030 sustainability targets, with key advancements such as:

A $100 million Climate Fund investment in sustainable aviation fuel (SAF) projects.
Expansion of reef restoration projects in partnership with the Great Barrier Reef Foundation.
Reduction of 130+ tonnes of waste through enhanced inflight recycling initiatives.

In addition, Qantas has deepened its commitment to community partnerships, with long-term alliances with Surf Lifesaving Australia and the Australian Red Cross, aiming to train 750 new volunteers.

Industry Challenges and Future Outlook

Despite the airline’s impressive financial performance, Qantas continues to navigate industry-wide challenges, including:

Supply chain disruptions affecting A330 aircraft maintenance.
Rising government and airport charges impact operational costs.
Wage legislation compliance under ‘Same Job Same Pay’ initiatives.

Looking ahead, Qantas anticipates strong travel demand across all sectors, with:

3-5% revenue growth in domestic operations.
Stable international revenue performance.
Further cost efficiencies and productivity enhancements through strategic fleet investments.

CEO Vanessa Hudson’s Vision for Qantas’ Future

Qantas Group CEO Vanessa Hudson remains confident in the company’s direction, stating:

“Our financial strength and strategic investments ensure we remain at the forefront of the aviation industry. The dedication of our people and the unwavering loyalty of our customers are the foundation of our success. We are focused on delivering world-class travel experiences while maintaining strong shareholder returns.”

With a robust financial outlook, innovative fleet upgrades, and an unwavering focus on customer satisfaction, Qantas Group is poised to soar higher than ever in the aviation industry.