Qantas chief hints at lower fares after posting record $1.4bn half-year profit thanks to soaring demand

Qantas has recorded a “huge” turnaround, delivering a record half-year profit of $1.43bn as customers head back to the skies after years of pandemic frustration and travel cancellations.

The underlying profit for the six-month period to December contrasts with the dour results a year earlier, when the national carrier reported a $1.28bn loss.

“This is the recovery our people, our shareholders – and in many respects, our customers – have been waiting for,” the Qantas chief executive, Alan Joyce, said.

“This is a huge turnaround considering the massive losses we were facing just 12 months ago.”

The result was underpinned by a rebound in travel demand, especially for leisure. While Qantas expects rising interest rates and inflation to eventually hit discretionary spending, it is yet to see any slowdown in bookings.

Airlines around the world have experienced numerous flight delays and cancellations in recent months, frustrating travellers who have been subjected to high ticket prices.

Joyce said fares had risen because of higher fuel costs and because capacity couldn’t keep up with demand amid supply chain constraints.

“Now those challenges are starting to unwind, we can add more capacity and that will put downward pressure on fares,” Joyce said.

The Qantas brand, one of the most recognisable in Australia, has been hurt in recent months because of reliability issues, according to market research company Roy Morgan.

skip past newsletter promotion

Sign up to Guardian Australia’s Afternoon Update

Our Australian afternoon update email breaks down the key national and international stories of the day and why they matter

Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.

after newsletter promotion

Revenue tripled to $9.9bn in the period, and the airline announced a $500m on-market buyback, a strategy companies tend to use when they have excess cash.

Qantas said on Thursday it was rewarding 20,000 employees with travel credit of $500 and bonuses of up to $11,500 in cash and shares given the role of its workers in the airline’s recovery.

Before the results announced on Thursday, Qantas reported $7bn in statutory losses linked to the pandemic.