Quick Take Qantas shares hit an all-time high after the Australian flag carrier delivered a 15% profit jump to A$2.39 billion, driven by resilient travel demand across its domestic and international networks.
The Breakdown The airline's underlying profit before tax beat consensus estimates, while revenue climbed 8.6% to A$23.82 billion for the year ending June 30. CEO Vanessa Hudson highlighted budget subsidiary Jetstar's "standout year" with a 55% earnings jump as it carried a record 16 million domestic passengers.
Shareholders are getting rewarded handsomely – Qantas declared its biggest annual dividend payout in 17 years at 33 cents per share, including a special dividend. The airline also ordered 20 more Airbus A321XLR aircraft, with 16 featuring lie-flat business class seats, signaling a premium push.
Investor Lens Qantas stock surged as much as 13.6% in early trading before settling around 9% higher. The strong results validate the post-pandemic travel recovery story that investors have been banking on. The record dividend payout and special distribution should please income-focused shareholders, while the fleet expansion suggests management's confidence in sustained demand.
However, Hudson noted rising costs above inflation rates, which could pressure margins despite cheaper fuel – something to watch going forward.
Context Check This performance underscores the broader resilience of APAC's travel sector as business and leisure demand normalizes post-COVID. Qantas' premium aircraft orders also reflect a regional trend toward higher-margin services as airlines compete for lucrative business travelers.
The strong results come despite recent turbulence – Qantas was hit with a record A$90 million penalty for illegally sacking 1,800 ground staff during the pandemic, showing how operational challenges haven't derailed the recovery.
Source: CNBC