Qantas flags record profit.

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RooFlyer

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From the Oz on-line

Qantas forecasts airline’s biggest ever annual profit of $2.475bn

Qantas has announced it’s on track for a record annual profit of between $2.425bn and $2.475bn for the year to June 30, continuing the airline’s astounding turnaround.

The figure would represent the biggest in Qantas history, beating the previous full year record profit of $1.6bn in 2018.

In the 2022 financial year, Qantas made a $1.8bn loss but recovered to post a $1.43bn half year profit in the six months to December 31, 2022.
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Good luck to the shareholders - for now. Pity for the customers.
 
QF newsroom release QANTAS GROUP MARKET UPDATE: STRONG PERFORMANCE SUPPORTS FLEET INVESTMENT, SHAREHOLDER RETURNS

  • Estimated Underlying Profit Before Tax of between $2,425 million – $2,475 million for FY23.
  • Net debt of $2,700 million – $2,900 million expected at 30 June 2023.
  • Fuel prices, costs associated with operational buffer and fares all moderating.
  • On-market buy-back increased by up to $100 million.
  • On-track to share benefits of recovery with employees.
<snip>
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And QANTAS ANNOUNCES BOARD CHANGES
The Qantas Group has today announced two changes to its Board, as the national carrier continues to focus on renewal.

Former American Airlines CEO and Chairman, Doug Parker, will join the Qantas Board, bringing more than 35 years of aviation experience gained in one of the world’s most dynamic aviation markets.

In November, long-serving Qantas Director Michael L’Estrange AO will retire from the Board at the expiry of his current term, having made a substantial contribution over more than seven years. <snip>
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justinbrett said:
Has it even touched the sides of the covid debt?
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Given that they are giving a bunch of the cash component of the profit back to the shareholders via an equity buyback, possibly not. Debt can’t be that bad.

tdimdad said:
What was AA like when he was at the helm? What kind of flavour and thinking is he bringing in?
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I think @drron was an observer of Parker previously. IIRC Parker came from US Airways when they and AA ‘merged’ and it was thought generally as beginning a decline in AAs customer amenity. Looks like they found the perfect replacement for Alan Joyce on the Board.
 
Well he did start as CEO of America West Airlines who merged with US Airways and he became CEO of the merged group. Rinse and repeat with AA. Probably not relevant for his QF board role, more look at his last years at the helm of AA. As far as onboard and loyalty product goes I think AA on the last few years have been following DLs lead - to keep the analysts happy.
 
RooFlyer said:
I think @drron was an observer of Parker previously. IIRC Parker came from US Airways when they and AA ‘merged’ and it was thought generally as beginning a decline in AAs customer amenity. Looks like they found the perfect replacement for Alan Joyce on the Board.
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IMO AA was a much better airline after the merger; flying in the years after 9/11 it was a dismal airline, but around the time of the merger it became a much better airline with a lot of investment in new fleets and lounges. I prefer flying AA domestic to QF domestic these days. From that I take it Doug Parker was a good CEO.

I also think AA and QF should be a lot closer than they are (why was QF left out of the group of airlines that gives MCE for free to elites), and having him on the board should foster closer relations between AA and QF.
 
RooFlyer said:
Given that they are giving a bunch of the cash component of the profit back to the shareholders via an equity buyback, possibly not. Debt can’t be that bad.


I think @drron was an observer of Parker previously. IIRC Parker came from US Airways when they and AA ‘merged’ and it was thought generally as beginning a decline in AAs customer amenity. Looks like they found the perfect replacement for Alan Joyce on the Board.
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I have never flown on a USA-based airline (despite multiple visits) but generally from YouTube and media, with the exception of that UA Polaris class or whatever it's called, USA airlines do not seem to have a great reputation for service/food/comfort to passengers when checking in or on the aircraft.
 
RooFlyer said:
...

I think @drron was an observer of Parker previously. IIRC Parker came from US Airways when they and AA ‘merged’ and it was thought generally as beginning a decline in AAs customer amenity. Looks like they found the perfect replacement for Alan Joyce on the Board.
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Ding ding ding.... correct.

These days AAgents have no discretion to help customers. They have to follow what the computer says.
 
Melburnian1 said:
I have never flown on a USA-based airline (despite multiple visits) but generally from YouTube and media, with the exception of that UA Polaris class or whatever it's called, USA airlines do not seem to have a great reputation for service/food/comfort to passengers when checking in or on the aircraft.
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I do fly AA a lot, and I strongly disagree with your comments. As above, this seems to be a stereotype of US carriers after 9/11, not present day. For the most part, US does customer service better than most other Western countries.
 
LostRedditor said:
Why is this worrisome? I've not flown with AA before but I haven't heard anything terrible either.
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Exactly. The same people would be praising him if he was appointed as the next VA CEO.

I for one would welcome QF becoming more like AA.

That said, he’s neither the chairman nor the CEO. Just a board member. Not exactly veto powers.
 
LostRedditor said:
Why is this worrisome? I've not flown with AA before but I haven't heard anything terrible either.
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It’s not about taking a flight or several with AA as to how good or bad it is or was. It was how the airline changed for the worse after Parker became CEO.

Have a read of what industry observers have said about his legacy and effect on AA.

justinbrett said:
Exactly. The same people would be praising him if he was appointed as the next VA CEO.

I for one would welcome QF becoming more like AA.
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As of the first, that’s nonsense of course. Doug Parker is Doug Parker with his legacy and he’ll bring the same to any airlines he gets his mitts on.

One positive from this is that he for sure won’t be on the board of VA after it floats.

As to the second, well, I think we’ve agreed in other places that our measures of good airline performance and experiences are quite different.
 
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justinbrett said:
That said, he’s neither the chairman nor the CEO. Just a board member. Not exactly veto powers.
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As a board member he still has the ability to influence direction and bring projects to the board. Lack of 'veto power' is irrelevant.
Being on a few advisory/executive/management boards, I'm not sure there is a general understanding about how they work. A good Chair/Board will have already agreed on proposals for action long before being presented, including getting board member input into the proposal before developing the board paper for decision.
Still, does Qantas have good board governance is an open question, in my mind.
 
justinbrett said:
IMO AA was a much better airline after the merger; flying in the years after 9/11 it was a dismal airline, but around the time of the merger it became a much better airline with a lot of investment in new fleets and lounges. I prefer flying AA domestic to QF domestic these days. From that I take it Doug Parker was a good CEO.
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I completely and utterly disagree.

Parker made cuts so fast and so deep that they ended up apologizing to their regular flyers for their poor service "standards" such as meals in First Class.

A man strait out of AJ's mould - I fear for Qantas if Parker has any real say in matters.

Just go over to FlyerTalk and check the AA forum out for posts during the period USair took over AA from inside like a parasite.
 
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