Australia’s Transport Employees’ Union have asked Qantas’ CEO to resign over for “empty guarantees to frustrated passengers” and “announcing more tactics to silence employees and suppress wages.”
Phil Noble | Reuters
Australia’s flagship carrier Qantas Airways reported a record annual profit on Thursday as demand for air travel continues to boom post-pandemic, with the airline announcing a share buyback and plans to bring more planes to the sky.
The carrier announced it had reached an underlying profit before tax of $2.47 billion Australian dollars ($1.6 billion) for the 12 months that ended June 30, from the previous A$1.86 billion loss a 12 months ago, a statement read.Â
The board has also approved A$500 million buyback which can begin in September.
“We’re quite a bit higher than where we were initially of the 12 months,” CEO Alan Joyce told CNBC’s “Street Signs Asia” on Thursday, attributing the profits to its strong standing in Australia’s airline industry attributable to low cancellation rates and “on time performance.”Â
Demand for domestic and international flights have made regular recovery because the pandemic, and the airline is ready to extend its fleet.
Shares of Qantas closed greater than 1% higher on Thursday.
Recent planes, recent routes
Qantas also announced Thursday that it has placed a multi-billion dollar order for 12 Airbus 350 and 12 Boeing 787 aircraft because it looks to retire older planes.Â
“We’ve a commitment to over 170 aircrafts over the following decade, and that enables us to renew our domestic and international fleet,” Joyce said.
“Our balance sheet is as strong as it has been in many years, and our earnings have made a step level with a billion dollars cost out which implies we will afford this fleet alternative growth going forward,” he added.Â
Recent flight routes are also within the works, with long-haul direct flights from Sydney to London and Recent York set to take off in 2025.Â
Joyce highlighted that the airline was “very brave” to place in an order for brand spanking new aircrafts in the course of the pandemic because it now “allows us to do things no other airline on the earth” can do.Â
Air fares will fall ‘significantly’
Pent-up demand and revenge travel spending have kept flight prices high, but that is expected to “come down significantly” in the following 12 months as international capability will likely be increased by 6.4 million seats next 12 months, Joyce said.Â
Domestic air fares are actually on average 20% dearer than in 2019 attributable to inflation and better fuel prices, and the price of international flights has surged by 40% to 50% since 4 years ago.Â
Joyce will likely be retiring from his current position in November and is ready to get replaced by Vanessa Hudson, the airline’s first female CEO.Â
