Qantas, the faster-than-sound airline, has upgraded its profit forecast for the next two years again. This time with the addition of a striking new paint scheme. It was just one of many enhancements this flying kangaroo has seen in recent months.
Qantas has adjusted its profit forecast for the first half of its 2022/23 financial year. Qantas expects an underlying profit before tax of between AU$1.35 and AU$1.45 billion ($910.1 – $977.5 million) while at the same time reducing net debt by AU$900 million to an expected total of AU$2.3 – AU$2.5 billion ($1.54 – $1.67 billion).
Are the cozy duopoly coming back?
On the heels of a bad year for airlines and the ongoing health crisis, this is a great time to be situated in Australia’s aircraft manufacturing field. Let us know if you’d like to explore these possibilities with us!
Low capacity and low pricing have been the bread and butter of these two carriers in their battle over the domestic airspace. However, recently their PLF surpassed 80% internationally on Qantas flights from Johannesburg, Bali and Rome. This is what’s driving their profitability, as they said:
In the future, it’s likely consumers will place a higher priority on travel in the form of international leisure trips. Scarcity restricts the supply of international capacity and has increased domestic leisure demand in Australia, helping it to benefit from the industry.
Opening a new office in the international market
Qantas international capacity is 30% below pre-COVID levels, and the return of more A380s is addressing that. Australian fares are through the roof and many carriers are now resuming or adding more services into Australia. 2023 looks promising because airlines from all points in the world, including Emirates, Qatar Airways, United Airlines, American Airlines, Singapore Airlines, Thai Airways, Vietnam Airlines, Air New Zealand and Delta Air Lines have all identified an opportunity in restriction-free international travel for Australians.
Qantas has had a rough year, apparently. But the airline came back strong and is now leading their country in operational performance.
Despite their unpopular relationship to profits, Qantas continues to cultivate a frequent flier base. They’ve announced that one million sales fares were given in October and said even more sales are planned in the coming weeks. Providing rewards for their frequent flyers, they released 5 million reward seats and also released “Points Planes,” where every seat is available for points.
Up where the big players are
Qantas’s sky-high share price, improved outlook, and successful management has made them a top ten airline by 2022. Market commentators say that it could see Qantas move into the world’s top five carriers by 2022. Another profit upgrade or share buyback could see them reach the highest ranking.
Qantas needs to maintain its credibility during the upcoming peak holiday season. While this may be all bouquets today, we’ll need to find a way to successfully navigate it in order to maintain that integrity.