Qantas half-year underlying profit surges $1.4b, dividend to be paid for first time since COVID

Qantas will pay a dividend to shareholders for the first time since almost six years after posting a strong first-half result.

The airline’s underlying profit after tax surged 11 per cent to $1.39 billion, while its statutory net profit after tax was up six per cent on the equivalent half, to $923 million.

Earnings per share were up 21 per cent to 63 cents and the airline announced it would hand back base and special dividends to shareholders totalling 26.4c per share.

It was the first time the airline had paid a dividend since the 2019 financial year.

Qantas CEO Vanessa Hudson thanked company staff for the performance.

“You are the backbone behind delivering to our customers, so you can be very proud of our results,” Ms Hudson said from the results briefing.

The airline’s boss admitted there was still work to do to rebuild public trust after years of soaring customer dissatisfaction and public scrutiny over issues including selling tickets to cancelled “ghost” flights, illegal COVID-era sackings and executive bonuses.

“We’re seeing progress from the investments we are making for our customers and people but we know there’s more work to do to consistently deliver in the moments that matter,” Ms Hudson said.

“This is a key part of rebuilding trust and continues to be our focus.”

In December, Qantas announced it would set up a $120m compensation fund after reaching a deal with the Transport Workers Union after it was found to have illegally sacked 1820 workers in 2020.

In October, the airline was fined $100m for selling tickets to cancelled flights over several years, following Federal Court action taken by the Australian Competition and Consumer Commission.

The strength of the first-half result was driven by the group’s dual brand strategy, Qantas said, as living cost pressures drove discount carrier Jetstar to record-high passenger levels.

Jetstar delivered a 54 per cent increase in domestic earnings compared to the previous year.

Qantas Loyalty posted earnings before interest and taxes of $255m for the half.

Net debt remained at $4.1b as at 31 December 2024, and is expected to be at or below the middle of the target range of between $4.7b and $5.8b for FY25.

Qantas returned $431m to shareholders in on-market buybacks, which it used to help fund the purchase of 11 new aircraft in the first half, with plans to buy another seven in the second.