Qantas shares rise on strong result, return of dividends
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More news: Shares in Qantas were up nearly 7.4% to $9.5 at 11:37am AEDT after Australia's biggest airline outlined its first dividend since FY19 following a lift in first-half profit. The company will pay a base dividend and a special dividend totalling 26.4 cents a share after underlying profit increased 11% to $1.39 billion.
RBC Capital Markets analyst Owen Birrell said the results and payouts were broadly in line with consensus. However, the outlook is mixed, with second-half capacity guidance "solid" but fuel cost guidance "higher than expected".
Qantas pays first dividend since 2019 as profit hits $1.4b
The news: Qantas has lifted first-half profit on the back of strong demand across sectors and will pay a dividend for the first time since FY19.
The numbers: Statutory profit after tax for the six months to December was up 6.2% to $923 million. Underlying profit before tax was up 11% to $1.39 billion, slightly below analyst estimates.
The company will pay a base dividend and a special dividend totalling 26.4 cents a share, its first payout since FY19. Analysts had expected an average payout of 11 cents a share, according to Visible Alpha data.
Underlying profit before tax — management's preferred profitability metric — rose 11% to a better-than-expected $1.38 billion.
The context: Australia’s biggest airline said domestic earnings improved 5% year on year on the back of strong corporate and leisure travel. International earnings also increased 5% amid an increase in demand for premium cabins. The Qantas loyalty program improved earnings to $255 million, with an 11% increase in active members.
The group now expects domestic revenue to increase 3% to 5% in the second half of the year, while international revenue is likely to be flat from a year ago. It expect the FY25 fuel bill to be higher at $5.22 billion.
“The group’s performance highlights the benefits of having both a premium and low fares airline and a strong loyalty program,” CEO Vanessa Hudson said.
The source: ASX
