Qantas Group posts strong results in 2024 report

Qantas Group, which covers Australian carriers Qantas and Jetstar, released its 2024 annual report, achieving an underlying profit before tax of $2.08 billion and a statutory profit after tax of $1.25 billion for the fiscal year ending 30 June 2024.

Both Qantas and Jetstar saw significant improvements in operational performance and customer satisfaction across the year, driven by investments in its operations, enhanced food and beverage, an overhaul of Qantas’ digital platforms, as well as the increased availability of frequent flyer seats.

However, overall earnings were lower compared to last year as fares moderated with the return of market capacity, spending on customer initiatives increased and freight revenue reduced predominantly in the first half. 

Revenue from the group’s domestic unit provided positive momentum in the second half, increasing on levels seen at the same time in the previous year.

On the domestic front

The group’s domestic holdings delivered $1,361 million in underlying earnings with an EBIT margin of 14 per cent, supported by Qantas and Jetstar’s dual brand strategy.

Jetstar grew its domestic network by 15 percent year on year as demand for low fares travel strengthened, while Qantas’ capacity increased by 1 percent as the continued return of corporate and small business travel more than offset a softening of demand for domestic premium leisure travel.

Growth in the resources sector continued with charter revenue up 18 percent on the previous year, with the Group adding three mid-life A319 aircraft to service these customers during the year.

Qantas’ on-time performance was particularly strong in the fourth quarter nearing long term averages with 80 percent of flights departing on time, while 74 per cent of Jetstar flights departed on time. This improvement helped drive customer satisfaction with Qantas Domestic’s Net Promoter Score increasing by 24 points.

Qantas’ mishandled baggage reduced by almost a third year on year and is now better than pre-COVID levels.

The Group also provided more than 45,000 Bonza and Rex customers with free of charge flights after they ceased operations.

International and cargo performance

International earnings moderated to $755 million underlying EBIT as the return of global airline capacity put downward pressure on fares and freight yields declined.

The Qantas Group returned to pre-COVID international capacity in May 2024, with the return of more aircraft, including two more A380s. The revenue from this additional flying was offset by an anticipated increase in competitor capacity, which resulted in an 11 per cent reduction in unit revenue, although the decline slowed in the second half.

The performance and popularity of Perth-London, Perth-Rome and since July, Perth-Paris, continue to provide confidence in the launch of non-stop flights to London and New York from Melbourne or Sydney, with the A350-1000ULR expected to arrive in mid-2026.

Jetstar’s international network saw significant growth and an 11 per cent margin for the year. Some of the new A321LR aircraft have been used to grow short haul international routes to destinations like Fiji and Bali, allowing for B787s to be redeployed on long haul routes such as east coast Australia to Japan and South Korea.

Qantas Freight recovered in the second half of FY24 after a challenging first half, with a continuation of the fleet simplification program introducing two A330 and three A321 freighters this year. International freight yields moderated faster than expected but continue to hold more than 150 per cent above pre-COVID levels.

Fleet renewal ongoing

The Group’s fleet renewal continued with 11 new aircraft arriving during the year, including five Jetstar Airbus A321neo Long Range aircraft and two QantasLink A220s, as capital expenditure increased to $3.1 billion. 

The new fleet provides improvements in operating cost, network flexibility, passenger comfort and emissions.

Acknowledging the team behind the success

As part of recognising the efforts of its people, 23,000 non-executive employees will receive a $500 staff travel voucher to go towards already heavily discounted standby fares. 

This is in addition to a $500 voucher provided to employees in February, bringing the total to $1,000 for the year.