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Highlights
- Qantas shares fell nearly 1.5% on Monday after the airline updated about the expected impact of higher fuel prices on its FY24 earnings.
- In FY24, the company will focus on customer improvement by investing an additional AUD 80 million.
- Perpetual Investment Management Limited has the maximum stake in the firm with a shareholding of 5.76%.
Qantas Airways Ltd (ASX:QAN) is a provider of international and domestic air transportation services. The company also provides holiday tours domestically and globally and related services like catering, ground handling, information technology and engineering and maintenance. The company operates through Qantas Loyalty, Qantas International, Qantas Domestic and Jetstar Group.
Qantas shares fell nearly 1.5% on Monday after the airline updated about the expected impact of higher fuel prices on its FY24 earnings. The airline said fuel prices have increased by around 30% since May 2023 and this is expected to drive its fuel bill higher by about AUD 200mn in the first half of the current financial year. QAN said that it will absorb these costs and also monitor fuel prices regularly.
QAN also said that it will invest an additional AUD 80 million in customer improvement in FY24, in addition to the AU$ 150 million invested previously. QAN informed that the travel demand was strong in the first quarter of FY24, like the fourth quarter of FY23.
By the end of the calendar year, wet-leasing arrangements and new aircraft deliveries are forecasted to boost the global capacity of Jetstar and Qantas by 12 percentage points, representing an increase of around 50 additional flights in a week.
The financial year 2023 marks the first full year of statutory profit for the company since FY19, as the period saw improvement in performance after a challenging ramp up. During the period, statutory profit increased by 102.79% to AUD 1,744 million, while the revenue and other income surged by 117.56% to AUD 19.82 million.
Top 10 shareholders of QAN
The top 10 shareholders of QAN together have 16.90% stake in the firm, and Perpetual Investment Management Limited holds the highest stake with a shareholding of 5.76%.
Outlook
The company entered the new financial year with a reoccurring cost benefit of AUD 1 billion from its recovery campaign. In FY24, the company expects to deliver EBIT of AUD 500 – 600 million from the Qantas loyalty segment, six months earlier than expected.
The net debt is expected to surge in FY24, but it will be below the bottom range of the target.
Share performance of QAN
QAN shares closed 1.51% down at AUD 5.23 apiece on 25 September 2023 with a market capitalization of AUD 9.15 billion. Including this, QAN shares have increased by 1.75% in the past 12 months and reported a fall of 19.53% in the last six months.
The 52-week high of QAN is AUD 6.94 apiece, recorded on 5 April 2023, while the 52-week low is AUD 4.87 apiece, recorded on 3 October 2022.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 25 September 2023. The reference data in this report has been partly sourced from REFINITIV.
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