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Highlights
- Qantas (ASX:QAN) posts an 11% rise in underlying profit before tax, reaching $1.39 billion.
- A special dividend and base dividend announced, backed by strong financial liquidity.
- International and domestic travel demand remains robust, boosting revenue growth.
Qantas Airways (ASX:QAN) has delivered an impressive half-year result for the six months ending December 31, 2024. The airline reported a substantial increase in profits, higher earnings per share, and a significant dividend payout, showcasing its strong financial position and sustained business growth.
Impressive Financial Results
The company’s underlying profit before tax climbed 11% to $1.39 billion, while its statutory profit after tax increased by 6% to $923 million. Underlying earnings per share (EPS) saw a remarkable 21% rise to $0.63, reflecting the airline’s operational efficiency and demand resilience.
Qantas also confirmed a base dividend of $0.165 per share, totaling $250 million, and a special dividend of $0.099 per share, amounting to $150 million. The dividend distribution is backed by the company’s robust financial health, with $2.3 billion in cash reserves and an additional $1.2 billion in undrawn facilities.
Strong Performance Across Segments
The airline reported solid earnings across its divisions. The domestic segment generated an underlying EBIT of $916 million, supported by growing demand for both corporate and leisure travel. The return of high-yielding business travel further contributed to the segment’s growth.
International operations also performed well, despite a 6.6% dip in average fares. Demand for premium cabin seats continued to increase, driving revenue growth. Meanwhile, Qantas Freight recorded an 11% jump in net revenue, benefiting from restored capacity and fleet upgrades. The segment capitalized on rising e-commerce activity, further strengthening its revenue streams.
Qantas Loyalty, a key pillar of the business, experienced an 11% increase in membership, reaching 17 million members. Growth in financial services, credit cards, retail, and insurance partnerships played a crucial role in this expansion. Notably, over two-thirds of all Qantas points are now earned through ground-based transactions, and point redemptions rose by 6%.
Future Outlook and Fleet Expansion
The airline remains committed to fleet renewal, with seven new aircraft expected to arrive in the second half of the year. This expansion aligns with the growing demand for both domestic and international travel, ensuring Qantas remains well-positioned for sustained growth.
With its strong balance sheet, increased fleet investments, and continued focus on customer and employee initiatives, Qantas remains on track for further business expansion. The recent results highlight the airline’s ability to navigate evolving market conditions while delivering consistent returns.
