Qantas Group reports $1.39B profit in H1 of FT25 due to ‘strong’ travel demand

Australia’s Qantas Group has reported an underlying profit before tax of AUD $1.39 billion (USD $882 million), for the six months that ended December 31, 2024. This is an 11% increase compared to the same period in the previous fiscal year. 

In its financial results for the first half of FY25 released on February 27, 2025, Qantas Group noted that both corporate and leisure travel demand continued to grow. This led to an Underlying EBIT of AUD $916 million (USD$581.80 million) for Group Domestic, with a 5% increase in unit revenue. Additionally, Group International earnings grew by 5%, resulting in an Underlying EBIT of AUD$497 million (USD$315.67 million). 

However, this profit is not the highest the airline has achieved. In FY24, Qantas Group reported an underlying profit before tax of AUD$2.08 billion (USD$1.32 billion) for the entire year. 

The group ended the half-year with over AUD$11.5 billion (USD$7.31 billion) in liquidity, including $2.3 billion AUD ($1.46 billion USD) in cash, AUD$1.2 billion (USD$762 million) in committed undrawn facilities, and more than AUD$8 billion (USD$5.08 billion) in unencumbered fleet.  

Qantas said that the performance was driven by the “strength of the Group’s dual brand strategy with demand for travel remaining strong across all customer segments.” 

Both Qantas and Jetstar’s domestic and international operations saw increased profitability, serving nearly 10% more customers. Premium and corporate travel remained strong for Qantas, while Jetstar carried a record number of customers and delivered a 54% increase in domestic earnings compared to the previous year. 

The group added 11 new aircraft and five mid-life aircraft in the half, stating that a major highlight of the result was the addition of Jetstar’s new Airbus A321LRs and A320neos, which now total 21 aircraft. 

Qantas said it is also renewing its fleet, with five A220s currently in service and performing well. This investment in new aircraft will be complemented by a significant cabin overhaul across existing aircraft. 

Qantas Loyalty showed strong performance, driven by active member engagement and inflows from partners growing by 11% and 18%, respectively. In December 2024, the group rewarded 27,000 non-executive employees with an AUD$1,000 (USD$635.15) thank you payment for their contributions. 

The group has seen an increase in consumer price index (CPI) in airport and government charges, along with rising engineering costs due to a limited aviation supply chain. 

For the first time since FY19, the group said it will pay dividends to shareholders, with an AUD$250 million (USD$158.79 million) base dividend and an AUD$150 million (USD$95.35 million) special dividend, which are both fully franked at 26.4 cents per share. 

Looking ahead to the second half of the year, the group said it expects “strong travel demand” across its portfolio. Group Domestic unit revenue is projected to rise 3–5% in the second half of the fiscal year compared to last year. Additionally, net freight revenue in 2H25 is expected to be $10–30 million higher than in the same period last year. 

In February 2025, the Australian Competition and Consumer Commission (ACCC) reported that Virgin Australia had surpassed flag carrier Qantas as Australia’s dominant domestic airline throughout the 2024 calendar year, with more passengers carried exclusively on internal flights within Australia. 

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