Airline posts $1.46 billion half-year profit
Updated ,first published
Qantas has announced a major change to its popular loyalty program and flagged a job hiring spree for future growth.
In a change to its loyalty program, Qantas will begin to allow members to spend their way to earning status credits through everyday spending, rather than rely on flying alone. Status credits allow lounge access, priority boarding and more generous baggage allowance, no matter the class of ticket being flown on. Status credits differ from regular Qantas frequent flyer points.
Qantas is also unveiling direct flights between Australia and sport and entertainment destination Las Vegas.
The announcements came as the airline posted $1.46 billion in pre-tax half-year profits, helped by strong demand, rising efficiencies from new Airbus aircraft, and Jetstar’s continued growth.
The result is up $71 million on the previous half, as the airline has been supported by robust consumer demand for travel and moderate fuel prices.
The airline said it remains on track to create 8500 jobs in Australia by 2030, Hudson said. This includes an additional 3500 cabin crew and more than 1000 pilots. It will launch a new Jetstar Perth
cabin crew base later this year, creating 90 roles. Notably, Qantas will re-establish a cabin crew base in Singapore, supporting its growing international network, Hudson said.
Hudson also lamented the impact of cost increases “outside” Qantas’ control such as airport charges and fee increase, which Qantas is trying to not to pass them along to consumers.
Hudson said the airline’s earnings have been helped by the delivery of new, more efficient planes, strong consumer appetite for Qantas loyalty points, and robust earnings from Jetstar.
“We’re already seeing the benefits from the next-generation aircraft that are flying, which along with strong demand, our dual brand strategy and expanding Loyalty business, helped us deliver another strong result,” said Qantas Group CEO Vanessa Hudson.
“Around 60 per cent of Jetstar’s increase in profitability in the half was driven by its new aircraft, through a combination of growth, new network opportunities and the redeployment of existing aircraft onto other routes.”
“This gives us confidence in the benefits that will flow once Qantas’ new aircraft reach scale. We’ve already started to see an acceleration in deliveries for Qantas, with six new aircraft arriving in the half and a further 30 arriving over the next 18 months.
She said some of the new aircraft will replace older aircraft, while some will open up new routes, “like the ultra-long range A350s, which will operate Project Sunrise flights”.
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