Falling fares blamed as Qantas profit nosedives by 13 per cent in first half

Qantas has announced a 13 per cent drop in its underlying profit for the half year, as the airline revealed new cabin interiors for Qantaslink and plans to offer fast, free WiFi on international flights.

Feb 22, 2024, updated Feb 22, 2024
Qantas CEO Vanessa Hudson speaks to media during a press conference at the Qantas Campus in Sydney (AAP Image/Bianca De Marchi)

Qantas CEO Vanessa Hudson speaks to media during a press conference at the Qantas Campus in Sydney (AAP Image/Bianca De Marchi)

The airline on Thursday reported it made a $1.25 billion underlying profit after tax for the six months to December, down $183 million, or 12.8 per cent, from a year ago.

That was up from the $1.16 billion that analysts had expected.

Revenue was up 12.3 per cent to $11.1 billion.

Lower fares cut Qantas’ profit by around $600 million, although this was mostly offset by increased flying, which boosted profit by $485 million.

Fares are down more than 10 per cent since peaking in late 2022, Qantas said.

The report is the Qantas’ first under new chief executive Vanessa Hudson, who said Thursday that the airline’s customer satisfaction levels had bounced back strongly since December.

“We know that millions of Australians rely on us and we’ve heard their feedback loud and clear,” she said.

Qantas also announced that QantasLink had taken delivery of the first two of 29 Airbus A220 jets that will replace its aging fleet of Boeing 717s.

The 137-seat A220s will offer a greater sense of space and the largest windows of any single aisle aircraft for passengers flying them between cities like Melbourne, Hobart, Brisbane and Canberra, as well as Coffs Harbour and Launceston.

InQueensland in your inbox. The best local news every workday at lunch time.
By signing up, you agree to our User Agreement andPrivacy Policy & Cookie Statement. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

The new jets have double the range of the 717s, are less noisy, have more overhead locker space and will feature fast, free WiFi, Qantas said.

The airline also said it had ordered another eight Airbus A321XLRs for domestic flights, bringing its order to 28. The 200-seat jets will progressively replace its 737s when they begin arriving in early 2025.

Qantas also said it will begin offering fast and free WiFi on international flights, a service that will be progressively switched on as jets are retrofitted starting at the end of this year.

The service is being offered through global broadband provider Viasat, whose satellites are now advanced enough that passengers will be able to stream movies and watch live sports, Qantas said.

“We know that staying connected is important to customers on international flights, and we’ve deliberately waited for the same high-speed connection we use domestically to be available on our overseas routes,” Ms Hudson said.

The technology will come to Jetstar’s widebody fleet from 2026.

Local News Matters
Copyright © 2024 InQueensland.
All rights reserved.
Privacy Policy