Qantas adds $500m buyback, posts record profit
Qantas delivered a record annual profit and will return a further $500 million to shareholders, as pressure mounts on the airline to justify its robust profit margins, which exceed pre-pandemic flying levels.
The country’s biggest airline reported underlying net profit of $2.47 billion and announced an on-market buyback starting next month, expanding on the $1 billion in returns it made to shareholders over the 2023 financial year when it bought back shares at an average price of $6.19.
Qantas chief executive Alan Joyce. Rhett Wyman
Qantas chief executive Alan Joyce, who will appear before the senate on Monday, said: “These results show a substantial turnaround in both our finances and service over the past year.
“Flight delays and cancellations have largely returned to pre-COVID levels and we’ve shifted from heavy losses to a strong profit and pipeline of investment worth billions of dollars.”
Qantas ordered 12 Boeing 787 Dreamliners and 12 Airbus A350s, to replace its ageing fleet. Heather Smith will join the board, adding Qantas to her non-executive director roles at ASX and Challenger.
Qantas said domestic flights were already above pre-COVID capacity, but flagged international would not return to pre-pandemic levels until the second half of 2024. The airline received $2.7 billion in taxpayer handouts during the pandemic.
As Qantas stares down a hefty capital expenditure bill for its new aircraft it said its liquidity was strong at $10 billion, including $4.4 billion in cash and undrawn facilities and $5.6 billion in unencumbered assets.
Net debt was lower than the targeted range, at $2.89 billion, and its financial year 2019 level of $4.7 billion.
“This exceptional balance sheet strength, combined with cashflows
Read more on afr.com
