Qantas Airways (QAN) H2 2024 earnings summary

Executive summary

• Underlying profit before tax for FY24 was AUD 2.08 billion, with statutory profit after tax of AUD 1.25 billion, reflecting strong operational performance and significant customer investment despite moderating fare environments and increased legal provisions.

• Net debt ended at AUD 4.1 billion, within the target range, and AUD 869 million in share buybacks were completed.

• Jetstar and Qantas Loyalty segments delivered record underlying EBIT, with Jetstar up 23% year-over-year and Loyalty EBIT at AUD 511 million, supported by strong demand and membership growth.

• Customer satisfaction and operational reliability improved, with major investments in fleet, digital experience, and employee initiatives.

• Continued major fleet renewal, with 16 new aircraft delivered in FY24 and further deliveries expected.

Financial highlights

• Group revenue rose to AUD 21.94 billion, with operating margin at 10.4% and underlying EPS of AUD 0.88.

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

• Net debt was AUD 4.1 billion, at the bottom of the AUD 3.9–4.9 billion target range.

• 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.

• Seat factor was 82.7%, with 51.8 million passengers carried, up 13.3% year-over-year.

Outlook and guidance

• FY25 net CapEx guidance is AUD 3.7–3.9 billion, with transformation targeting AUD 400 million in savings.

• 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.

• Fuel cost for 1H FY25 forecast at AUD 2.7 billion; depreciation and amortization at AUD 2 billion; net financing costs at AUD 0.27 billion.

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