Qantas says profit down but reputation rebounding
Qantas reported a slide in half-year net profit yesterday but said its reputation had “bounced back” under a new leader after taking a battering since the Covid-19 pandemic.
Despite the drop in profit, the 103-year-old airline said customer satisfaction had improved as it reported its first results under new chief executive Vanessa Hudson.
Her predecessor, Qantas veteran Alan Joyce, took early retirement in September as the once-beloved carrier suffered sustained criticism over its service, soaring ticket prices and its treatment of staff.
“We know that millions of Australians rely on us and we’ve heard their feedback loud and clear,” Hudson said.
“There’s a lot of work happening to lift our service levels, and the early signs are really positive.
“Our customer satisfaction levels have bounced back strongly since December and we have more service
and product improvements in the pipeline.”
Qantas said its net profit dropped 13.2% year-on-year to A$869 million (RM2.7 billion) in the six months to Dec 31.
Revenue rose 12.3% to A$11.1 billion, it said.
But overall costs climbed, pushed up in part by higher spending on fuel, aircraft operations and salaries.
Qantas said travel demand was strong, led by the leisure sector but with business travel now approaching pre-Covid-19 levels.
Fares had fallen by more than 10% from a late 2022 peak.
Qantas said it saw “strong demand” across its business.
Unit revenue was expected to remain stable in domestic operations and “continue to normalise” for international flights as market capacity expanded, it said.
Seat capacity in Qantas’ international operations is now at 90% of pre-pandemic levels, the airline said, up 25% from a year earlier.
A day before announcing its results, Qantas named corporate executive John Mullen its new chairman-elect from July 1.