Qantas lifts first-half profit view, mulls shareholder returns next year

Australia's Qantas Airways Wednesday again raised its first-half pre-tax profit expectation on strong travel demand, with limits on international capacity helping boost domestic tourism. In its second profit upgrade in six weeks, the carrier expects first-half underlying profit before tax between A$1.35b ($897m) and A$1.45b, above prior expectation of between A$1.2b and A$1.3b. A year earlier, the company recorded an underlying loss before tax of A$1.28b. "Consumers continue to put a high priority on travel ahead of other spending categories and there are signs that limits on international capacity are driving more domestic leisure demand, benefiting Australian tourism," Qantas said. Qantas also raised expectations for a decline in net debt to between A$2.3b and A$2.5b by the end of 2022, an A$900m improvement from its previous estimate. "Low levels of net debt put the board in a position to consider future shareholder returns in February 2023," the airline said, adding 76% of the A$400m share buyback program announced in August has been completed.<br/>