Qantas profit falls on cost of fixing damaged reputation

Qantas said full-year profit fell as the airline invested more to repair its battered reputation and air fares declined. Underlying profit before tax fell 16% in the year ended June 30 to A$2.08b ($1.4b), Qantas said Thursday. The result was in line with analyst expectations. Qantas shares fell after the airline flagged a slump in international passenger revenue in the final six months of 2024 as capacity continues to flood back into the market following the pandemic. Capital expenditure will jump to as much as A$3.9b this fiscal year from A$3.15b as Qantas foots the bill for its vast fleet overhaul. On a call with reporters, CEO Vanessa Hudson said international fares are continuing to fall as more aircraft take to the skies, though the pace of the decline will slow in the first half of 2025. The results underscore the challenges facing Hudson a year into her job. She’s still cleaning up the mess left by her predecessor Alan Joyce, while picking up the multibillion dollar bill for new aircraft. “Restoring trust and pride in Qantas as the national carrier is our priority,” Hudson said in a statement. “There’s more work to do.” Hudson said flight bookings were “holding up” amid a cost-of-living crisis, and customers appeared to be prioritizing air travel over other discretionary spending. That trend underpins what Hudson described as an “optimistic outlook” for the year ending June 2025.<br/>