Qantas HY26 results

[FlyingKangaroo]

This is a bit harsh but first of all, some of those Covid credit holders may no longer even be alive or able to travel... five years is a long time when you're getting pretty up there, and Qantas would have no way to know. Locked in limbo forever.

Pax based overseas may also never have found an opportunity to use them. We had a trip planned to South America that never eventuated in the form we had intended; had I had credits with indefinite expiration on Aerolineas Argentinas, they'd still be sitting there (instead, they just held onto the money and that was that).

Add to that credits people lose (it happens, especially for business travel I suspect -- just forgotten, or former employees, etc.) and very small balances people never bother to use and I can see that all adding up to those figures pretty fast when you consider how much revenue they collect in a year.

QF shot itself in the foot being so difficult during those years, and now find themselves in the unenviable position of having to maintain what is perhaps the most generous lingering Covid credit system in the industry. Diddums, I suppose.

 

[RooFlyer]

Something else happed with Qantas today ...

Qantas to create 8500 jobs and overhaul frequent flyer program after record profit

Qantas has delivered a record half year profit of $1.46bn, up $71m on the previous corresponding period, as it announced plans to re-establish a cabin crew base in Asia, create 8500 more jobs by 2030, and allowfrequent flyers to earn status credits on the ground.

There are also plans to add Las Vegas to the airline’s network, with a new seasonal route from Sydney to operate between December and March, saving up to five hours in flight time.

Statutory profit after tax was up $2m at $925m, with shareholders to score a fully franked dividend of 19.8c a share.

The underlying profit result just beat the 2023 record achieved under former CEO Alan Joyce, of $1.43bn.

Low fares carrier Jetstar and the Qantas Loyalty division both increased earnings over the six months by 12 per cent to $492m and $286m respectively, while Qantas Domestic remained the biggest money spinner for the group generating earnings of $676m.

Qantas International saw earnings dip 8 per cent to $300m, which was attributed to wage escalation, industry pressure and investment in training for Project Sunrise flights.

But can't please everybody

Qantas dumped by investors after mixed result

Qantas has fallen more than most companies listed on the S&P/ASX 200 in afternoon trade on Thursday, as investors react to its first-half results. They delivered a mixed bag with the airline’s first-half profit before tax of $1.45 billion coming in ahead of expectation, while international operations lagged.

Citi analyst Samuel Seow said domestic earnings before interest and tax were in line with expectations at $676 million, supported by domestic revenue per available seat kilometre rising 2 per cent and capacity growth of 4 per cent. International EBIT was weaker at $300 million versus a consensus of $344 million, affected by higher wages and investment costs, with revenue per available seat kilometre broadly in line but operating margin down 90 basis points.