Qantas posts $1.25b profit but more affordable ticket prices push revenue lower

Qantas has raked in over $1 billion in profit, but revenue has fallen due to lower ticket prices over the first half of financial year 2024.

The national carrier on Thursday posted an interim profit of $1.25b, a 13 per cent decline on the prior corresponding period.

Earnings also fell by 13 per cent, which the airline attributed to the reduction in ticket prices. They had been elevated due to a lack of capacity in the system and high demand

Total flying over the period increased by 25 per cent.

Qantas chief executive Vanessa Hudson — reporting her first results since taking the top job — said the airline had made headway with several investments to fix customer pain points, which had contributed to its image problem and perceptions of a lack of reliability.

“There’s a lot of work happening to lift our service levels and the early signs are really positive,” Ms Hudson said.

“Our customer satisfaction scores have bounced back strongly since December and we have more service and product improvements in the pipeline.

“Having the financial strength to keep investing is key, and that makes the strong performance that all business units had in the first half so important.”

Qantas on Wednesday announced former Telstra chair John Mullen would replace its outgoing board chair, Richard Goyder. Mr Mullen will initially join the board as a non-executive director in July.

The Australian carrier’s results came the same day Air New Zealand said it could raise ticket prices to cover rising costs. Its earnings slumped 38 per cent, citing inflationary pressures driving up its non-fuel operating costs over the past four years.