Qantas softens first-half guidance, previews Project Sunrise planes
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The news: Qantas has softened its revenue forecast for the first half of the financial year, but reported steady capacity growth across the group during the first quarter.
The numbers: The airline said group domestic unit revenue is now expected to increase by around 3% in the first half, at the bottom of the 3-5% growth previously guided. Qantas said the segment was impacted by slower-than-expected growth in non-resource corporate demand.
International unit revenue guidance remains unchanged at 2-3% growth for the first half. Qantas said its loyalty business remains on track to achieve 10-12% growth in first-half underlying earnings, consistent with guidance.
The context: Qantas said that despite non-resource corporate demand weighing on its domestic segment, leisure, SME and resource market demand remained strong over the quarter.
Its international unit saw "slightly lower" capacity than expected. The group said it is monitoring the ongoing US government shutdown and working to support customers, though "no material impact" has been felt to date.
The airline noted that geopolitical events continue to create fuel price volatility with jet refining margins remaining elevated.
Qantas also said it is on track to receive the first of its Project Sunrise planes by the end of next year. The airline shared new photos of the aircraft it ordered to operate non-stop flights between Sydney and New York.
