Qantas posts $1.9bn loss but revenue jumps 54% as air travel surges after borders reopen

Qantas has posted a full-year underlying pre-tax loss of $1.86bn after border closures and travel uncertainty as the Covid-19 pandemic weighed on earnings.

The airline’s net loss after tax for the year to 30 June narrowed to $860m, compared with $1.7bn the year before.

“These figures are staggering and getting through to the other side has obviously been tough,” Qantas chief executive, Alan Joyce, said on Thursday.

Alan Joyce announced the airline’s full-year results in Sydney. Photograph: Dean Lewins/AAP

But revenue for the year jumped 53.5% to $9.11bn after a revival in global air travel after restrictions eased.

Shares in Qantas jumped on the news, up 8% to $4.91 by 10.25am in a firm Australian market.

Qantas said flying levels for the year averaged 33% of pre-pandemic levels after the pandemic significantly disrupted air travel, but finished the financial year at 68%.

“We always knew travel demand would recover strongly but the speed and scale of that recovery has been exceptional,” Joyce said.

That, along with lower debt levels, enabled the airline to announce an on-market share buyback of up to $400m, although it will still not pay any dividend for the year.

“Our debt is now below our target range – so in addition to the investments we’re making in customers and our people, we’re in a position to start repaying shareholders,” Joyce said.

The airline’s net debt is down to $3.9bn at the end of the 2021/2022 financial year, from a high of $6.4bn.

Qantas said long periods of low activity combined with restart costs resulted in a full-year underlying loss of $1.1bn at its domestic operations, which include low-cost carrier Jetstar.

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But sustained recovery in domestic travel demand translated into positive earnings for the fourth quarter, Qantas said.

Heavy losses in the group’s international passenger business were again offset by a record performance of Qantas Freight, which benefited from high yields amid a shortage of cargo space globally.

Overall, Qantas’ international and freight division posted an underlying loss of $238m.

Qantas Loyalty accelerated its earnings growth to double digits in the second half.

The airline said it is now focusing on responding to current operational challenges.

Key customer measures including contact centre wait times, cancellation rates and mishandled bag rates are trending back towards pre-pandemic standards during August 2022, the company said.