Qantas Airways Ltd, an Australian airline, reported a significant increase in its profit on Thursday, which was supported by a strong rebound in travel demand. The company also announced a share buyback of A$500 million.
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Since the lifting of pandemic-related restrictions and border closures, air travel demand has surged globally. This, along with a shortage of aircraft, parts, and labor, has resulted in higher airfares. Qantas Group CEO Alan Joyce said, "Travel demand is incredibly robust, and we've acquired more aircraft and opened new routes to meet it."
The airline achieved an annual underlying profit before tax of A$2.47 billion ($1.60 billion) for the year ended June 30, compared to a loss of A$1.86 billion a year ago. This marks the first full-year statutory profit since fiscal year 2019. The company's profit was also aided by the completion of its A$1 billion recovery program launched in 2020 in response to the COVID-19 pandemic.
With a profit outlook of A$2.43 billion to A$2.48 billion, the results surpassed the mid-point and were nearly A$850 million higher than the previous record of A$1.60 billion set in 2018. Refinitiv Eikon analysts predicted a profit of A$2.45 billion. The company, however, did not declare a final dividend, continuing the trend of non-payment for the past three years.