Qantas Airways (QAN) H2 2024 earnings summary

Executive summary

• Underlying profit before tax for FY24 was AUD 2.08 billion, with underlying EPS of AUD 0.88 per share, reflecting strong performance despite increased customer investment and moderating fare environments.

• Statutory profit after tax was AUD 1.25 billion, down AUD 493 million year-over-year, impacted by one-off legal provisions and ACCC settlement.

• Net debt as of June 2024 was AUD 4.1 billion, within the target range, and AUD 869 million in share buybacks were completed.

• Jetstar and Loyalty segments delivered record results, with Qantas Loyalty EBIT of AUD 511 million and Jetstar EBIT of AUD 497 million.

• Significant progress was made in customer investment (AUD 230 million), operational reliability, and fleet renewal, with 16 new aircraft delivered.

Financial highlights

• Group revenue rose to AUD 21.94 billion, up from AUD 19.82 billion in FY23.

• Operating margin was 10.4%, among the highest globally in the airline industry.

• Operating cash flow was AUD 3.4 billion, with net capital expenditure of AUD 3.1 billion and AUD 869 million in share buybacks.

• Group RASK grew 10% and reached 93% of pre-COVID levels, but unit revenue fell 8.9% and costs fell 5.8% year-over-year.

• Underlying EPS was AUD 0.88, and rolling 12-month ROIC was 57.9%.

Outlook and guidance

• FY25 net CapEx guidance is AUD 3.7–3.9 billion, with continued focus on ROIC above WACC.

• Group Domestic RASK expected to rise 2–4% in 1H FY25; Group International RASK expected to fall 7–10% as capacity is restored.

• Qantas Loyalty underlying EBIT expected to grow at least 10% in FY25, with Classic Plus flywheel benefits in 2H25.

• Fully franked base dividends anticipated to be reinstated from 2H25, subject to board approval.

• Transformation target of AUD 400 million in FY25 to offset CPI, with EIS costs to grow by AUD 30 million.