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Qantas Reports $2.4 Billion Profit, Orders Airbus Jets, and Declares Dividend

Qantas Reports $2.4 Billion Profit Amid Strong Travel Demand
Qantas Airways Ltd. has announced a 15% increase in its full-year profit, reaching A$2.4 billion (US$1.6 billion), driven by robust travel demand and record passenger numbers for its low-cost subsidiary, Jetstar. CEO Vanessa Hudson noted that domestic corporate travel is approaching pre-pandemic levels, while premium international seating continues to experience high demand. This strong financial performance aligns with a broader global recovery in air travel, supported by data from IndexBox indicating sustained growth in passenger volumes worldwide.
In response to its solid results, Qantas declared a base dividend of A$250 million alongside a one-off payment of A$150 million to shareholders. The airline also announced that approximately 25,000 employees will receive A$1,000 in shares as part of its staff reward program. Furthermore, Qantas revealed an order for 20 additional Airbus A321XLR aircraft, aimed at modernizing its fleet to better serve longer domestic and short-haul international routes. This strategic investment has bolstered investor confidence, with Qantas shares rising as much as 14% in early Sydney trading, pushing the airline’s market capitalization to A$18.3 billion.
Challenges and Competitive Pressures
Despite its financial gains, Qantas faces increasing competition and reputational challenges. Rival Virgin Australia has been maintaining a lower flight cancellation rate, potentially threatening Qantas’ market share. Additionally, Cathay Pacific’s recent profit growth and substantial Boeing jet order have intensified competition within the Asia-Pacific aviation sector.
Qantas is also contending with the repercussions of past legal and reputational issues. The Federal Court of Australia recently imposed a record fine of A$90 million (US$59 million) on the airline for the unlawful dismissal of nearly 2,000 ground staff during the pandemic. The company continues to make compensation payments related to this case. CEO Vanessa Hudson reiterated the airline’s apology and stressed Qantas’ commitment to transforming its corporate culture.
As Qantas moves forward with fleet renewal and shareholder and employee rewards, it must carefully navigate a competitive environment while addressing the lingering effects of previous controversies. The airline’s future growth will depend not only on sustained travel demand but also on its ability to respond effectively to industry competition and rebuild stakeholder trust.

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