QANTAS Airways said full-year profit fell as the airline invested more to repair its battered reputation and air fares declined.
Underlying profit before tax fell 16 per cent in the year ended June 30 to A$2.08 billion (S$1.82 billion), Qantas said on Thursday. The result was in line with analyst expectations.
The airline flagged a slump in international passenger revenue in the final six months of 2024 as capacity floods back into the market following the pandemic.
Capital expenditure will jump to as much as A$3.9 billion this fiscal year from A$3.15 billion as Qantas foots the bill for its vast fleet overhaul.
The results underscore the challenges facing chief executive officer Vanessa Hudson a year into her job. She’s still cleaning up the mess left by her predecessor Alan Joyce, while picking up the multibillion dollar bill for new aircraft.
“Restoring trust and pride in Qantas as the national carrier is our priority,” Hudson said in a statement. “There’s more work to do.”
Bookings and travel demand “remain stable” the airline said.
Hudson took over from Joyce when he abruptly stepped down in the wake of a ghost-flight scandal, service cancellations and illegal sackings.
Qantas also announced a stock buyback of as much as A$400 million. BLOOMBERG
