Qantas shares lower after HY earnings hit
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More news: Qantas shares were down more than 4.6% to $5.33 after the airline said that lower fares contributed to a $600 million impact on profit during the December half.
After a slew of reputational hits throughout the six month period, Qantas CEO Vanessa Hudson said customer satisfaction scores had "bounced back strongly" since December.
Qantas profit drops after turbulent first half
The news: Lower fares hit Qantas earnings for the six months to December 2023 but Australia's flag carrier also announced a $400 million buyback during its half-year results.
The numbers: Qantas' statutory net profit after tax fell 13.2% to $869 million compared to the previous corresponding period. The company said that lower fares contributed to reduced revenue, with a $600 million impact on profit.
However, revenue grew 12.3% to $11.13 billion, boosted by a 25% increase in total flying, with Qantas carrying 3.3 million more passengers compared to 1H23.
The board approved a return to shareholders in the form of a $400 million on-market share buy-back.
The context: In September 2023, Alan Joyce quit after 15 years as CEO. His replacement, Vanessa Hudson, soon issued a public apology after the airliner was criticised on multiple fronts. This included ACCC allegations that it oversold flights, Alan Joyce's $21.4 million remuneration and the High Court finding it illegally sacked 1,700 workers during the pandemic.
In her first financial results as CEO, Hudson said that while customer satisfaction scores "bounced back strongly" since December, profits were hit by a 10% fall in fares since they peaked in late 2022.
On Wednesday, Qantas appointed former Telstra chair John Mullen to lead its board from 1 July 2024, replacing chair Richard Goyder.
The source: ASX announcement
