Due to strong travel demand, Qantas Group has increased its earnings forecast for the first half of the 2023 fiscal year.
An increase of $150 million from early October’s forecast, the Group now expects an Underlying Profit Before Tax of between $1.35 billion and $1.45 billion.
Additionally, by 31 December 2022, the company’s net debt is expected to have decreased to between $2.3 and $2.5 billion. This is an improvement of around $900 million compared to the previous forecast. It may be attributed to rising revenue inflows as more customers book flights with Qantas, Jetstar, and partner airlines for the year’s second half and beyond.
Fuel prices remain significantly higher than they were in FY2019 and are expected to hit over $5 billion in FY23, a Group record high despite worldwide capacity is around 30% lower than before the pandemic.
Qantas has improved its operational performance; it was the most punctual domestic airline in October. The airline’s performance will be boosted through the hectic holiday season by the $200 million it has invested in more workers, ongoing recruiting, and reserve aircraft.
It will also mitigate the results of the recent wave of COVID infections and the impacts of the harsh weather (especially wind) in November.
With over a million sale fares released in October and more sales expected for the coming weeks, the Group is working to build capacity as soon as possible in the second part of the year while preserving operational dependability.
Over the following 12 months, more than 5,000,000 reward tickets will be made accessible to frequent fliers with the introduction of additional Points Planes.
Around 60% of the $2 billion in COVID-related travel credits held by Qantas have been redeemed by customers. The airline has announced plans to unveil additional measures to entice consumers to spend the remaining credits over the next year.