Qantas profit falls as airfares ease from post-Covid boom

Qantas Airways said first-half profit declined as airfares fell from their post-Covid spike, and new CEO Vanessa Hudson increases spending to help restore the airline’s tarnished reputation. Underlying earnings before tax in the six months ended Dec. 31 dropped to A$1.25b ($757m) from A$1.43b a year earlier, the Australian airline said Thursday. That was broadly in line with analyst estimates of A$1.16b. Lower fares — which have fallen about 10% in real terms since peaking in December 2022 — had around a A$600m impact on profit, the carrier said. Hudson, who took the helm in September, is attempting to repair the damage to the Qantas brand incurred under former CEO Alan Joyce. The carrier’s reputation was shredded by a series of scandals and missteps — including claims it sold tickets for thousands of flights it had already canceled, a ruling it illegally sacked 1,700 workers during the pandemic, and a slew of delays and cancelations as travel demand surged in the aftermath of the pandemic. “We know that millions of Australians rely on us and we’ve heard their feedback loud and clear,” Hudson said in the statement. “There’s a lot of work happening to lift our service levels and the early signs are really positive.” Among new initiatives announced Thursday, Hudson said Qantas will accelerate the rollout of free wifi on international flights, upgrade digital platforms to allow passengers to track their luggage during the journey, and work with banks to proactively refund remaining Covid flight credits, which now stand at A$468m. It will also give a A$500 travel credit to its around 24,000 workers. Hudson faces the delicate task of balancing the needs of customers with those of shareholders, who became accustomed to record profits and generous capital returns when Joyce was in charge. The carrier Thursday announced an additional A$400m share buyback. <br/>