SYDNEY: Australian airline Qantas reported on Thursday a slide in net profit as post-COVID fares dropped, and said it was working to rebuild its reputation after a string of public scandals. Net profit fell 28 percent to Aus$1.25 billion ($US849 million) for the financial year that ended June 30, the airline said.
It blamed lower fares as market capacity expanded after the pandemic, along with the cost of customer-friendly initiatives and a reduction in freight revenue.
Revenue climbed 10.7 percent to Aus$21.9 billion, however. The carrier predicted stable bookings and travel demand in the months ahead, tipping a "positive revenue momentum”. Australians were making travel a spending priority, and their intention to travel over the next 12 months remained "high”, it said. "Our focus this year has been getting the balance right in delivering for customers, employees and shareholders while building a better, stronger Qantas Group,” said chief executive Vanessa Hudson.
"Restoring trust and pride in Qantas as the national carrier is our priority, and while there’s more work to do, we’ll get there by delivering for our customers and people consistently into the future.” Hudson took the pilot’s seat of the 103-year-old airline after the late 2023 departure of her predecessor Alan Joyce, who has been blamed for the carrier’s troubles. Qantas said this month it would claw back more than Aus$9 million in bonuses paid to Joyce, citing the Irish-born executive’s performance.
During his tenure, the once-beloved airline faced sustained criticism over its service, soaring ticket prices, and the treatment of staff. It enraged once-loyal Australians by charging high ticket prices despite record profits and getting a multi-billion-dollar taxpayer-funded bailout during the pandemic.
It was also embroiled in a bruising "ghost flights” scandal that saw it pay a large fine for continuing to sell seats on long-cancelled flights. Seeking to "recognize the efforts” of employees, Qantas said it would give an Aus$500 staff travel voucher to all 23,000 non-executive workers.
It is the second staff voucher issued after a similar gesture in February. Hudson said the results showed the "underlying strength” of Qantas’ operations. But she added the "job was not done” and flagged increased investment in customer experiences, upgraded services, and better staff support in the coming year. "The investment in operational reliability and customer initiatives delivered a positive improvement in on-time performance and customer satisfaction” she said. Looking forward, Hudson said she was "really optimistic” about being able to drive earnings growth and lift margins.
She assured shareholders this would not be done by increasing the cost of airfares, but rather through investment in the company’s fleet. The carrier has long been seen as the "spirit of Australia” — the nation’s link to the rest of the world. Although not state-run, Qantas is seen as an integral part of the economy and vital to cohesion in a country where major cities are hundreds of kilometers apart. – AFP