Qantas Reports AU$1.39B Profit: Airline Plans 100 New Aircraft, First Dividend Since 2019

Qantas on Thursday reported a half-year pre-tax profit of AU$1.39 billion, driven by a 10% increase in customer numbers, while also unveiling plans for a massive overhaul, including the addition of 100 new aircraft, with 18 set for delivery this financial year.

Qantas' half-year profit is an 11% increase from the previous year, driven by strong domestic performance, especially from its budget airline, Jetstar. The airline also saw an 18% rise in cash flow from its loyalty program, The Guardian reported.

Qantas resumes dividends as Jetstar sees strong growth

The airline also announced it will pay its first dividend since 2019, as statutory profit saw a rise from AU$869 million last year to AU$923 million.

Meanwhile, Jetstar also saw a 54% surge in domestic travel, despite cost-of-living pressures. The airline will issue two dividends on April 16 -- 16.5 cents per share as an interim dividend and 9.9 cents as a special dividend.

CEO Vanessa Hudson highlighted Qantas' improved financial strength and Jetstar's continued growth, with more new aircraft added to its fleet. She noted that Jetstar helped more Australians afford holidays despite rising living costs.

Jetstar's overall earnings grew by 35% over the past year, with domestic earnings rising 54%. In addition, the budget airline increased capacity by 8%, aided by an increase of eight new planes.

Qantas invests in fleet upgrade

Riding high on its financial success, the airline is not only rewarding shareholders with hundreds of millions in dividends, but also reinvesting in a major fleet upgrade.

While waiting for the rest of the planes, the airline is improving its older aircraft. Passengers can expect better seating, more cabin space, quieter flights, faster Wi-Fi, and more charging options for devices. This refurbishment will be done on 42 Boeing 737 planes, which are expected to remain in service until 2027.

"Investing in our fleet is one of the most significant ways that we can transform the flying experience for our customers and make sure we're consistently delivering a great journey," Hudson said. "As we bring more new aircraft into our fleet, we are also making our existing aircraft look and feel like new."

Qantas will be among the first airlines to operate the A321XLR, with the first aircraft arriving in June and four more by year-end. Hudson said the new planes would help reduce costs per passenger while increasing capacity.

Expanding the workforce and compensating former employees

Qantas hired over 1,500 new employees in the first half of FY25 to support fleet expansion, along with 1,100 internal promotions. The airline also agreed to pay AU$120 million in compensation to 1,820 ground crew workers, who were dismissed during the Covid-19 pandemic.