This morning (23 Feb 2023) Qantas CEO Alan Joyce announced that the Qantas Group earned $1.43 billion Underlying Profit Before Tax to 31 December 2022. Statutory Profit After Tax was $1.0 billion. This can be partly attributed to Qantas Freight, which continued to deliver earnings well above pre-COVID levels.
Qantas has faced troubling times in the last six months as flights return to pre-pandemic levels, from staff shortages, increased flight cancellations and baggage mishandling.
Qantas Group CEO Alan Joyce said: “This is a huge turnaround considering the massive losses we were facing just 12 months ago.
GROUP INTERNATIONAL AND FREIGHT
Group International delivered Underlying EBIT of $511 million as capacity almost doubled from 31 per cent of pre-COVID capacity in 2H22 to 60 per cent during the half. Two routes were re-opened and seven new routes were started, which represented a major logistical effort in port readiness and training after a long period of shutdown in most countries.
Qantas Freight continued to deliver earnings well above pre-COVID levels. Mr Joyce said that while international yields are softening with the return of more capacity to the market, a permanent increase in e-commerce domestically has created a structural shift in freight volumes and earnings.
INVESTING IN SUSTAINABILITY
Recently we reported on the need for Sustainable Aviation Fuel (SAF) if airlines are to achieve net zero emissions by 2050. On this topic, Mr Joyce said:
“And every new aircraft that we bring in helps towards our emission reduction target, because they burn up to 25 per cent less fuel.
“Electric and hydrogen are a long way off – especially for the distances we fly. That’s why we’re investing in Sustainable Aviation Fuel, which cuts lifecycle emissions by up to 80 per cent compared with fossil fuels.
“When you consider the importance of air travel in this country, Australia is a prime candidate to develop its own sustainable fuel industry. That’s the conversation we’re having with governments around the country with some urgency, and we welcome the Federal Government’s commitment to a SAF industry council that meets next week.”
Joyce hits back at calls to quit
During the media conference on Thursday, Mr Joyce also addressed The Transport Workers Union (TWU) calls for him to resign following the airline’s $50 “apology voucher.” The credit voucher comes amid consumer anger over months of flight cancellations, delayed and lost luggage.
Mr Joyce said the airline has been apologising for the mistakes it has made, “for not delivering for what the customers expect from us”. Mr Joyce said the Board asked him to continue in his role as CEO to get it “through this crisis” and he is confident Qantas will come out stronger.
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