Qantas Airways has boasted strong half-year results amid increased competition in the skies, with the approved Qatar-Virgin deal set to bring in more flights between Australia and Doha.
Qantas Airways has boasted strong half-year results amid increased competition in the skies, with the approved Qatar-Virgin deal set to bring in more flights between Australia and Doha.
The national airline today reported a $1.39 billion profit before tax, or $923 million profit after tax, in the six months to December 31.
The results represented a 6 per cent increase from the previous corresponding period.
In its half-year results, Qantas Airways said it would pay dividends to shareholders, with a $250 million base dividend and a $150 million special dividend, which are both fully franked at 26.4 cents per share.
Qantas Airways said it was the first time since FY19 it had paid dividends to its shareholders.
The company’s results announcement comes following approval by Treasurer Jim Chalmers of Qatar Airways’ 25 per cent acquisition in Virgin Australia.
Qantas had previously raised concerns over the five-year deal, which would lead to the Virgin-Qatar alliance operating 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.
But Qantas Group chief executive Vanessa Hudson reportedly welcomed the increased competition today, with the company instead focusing on the planned upgrades for its fleet.
In its results, Qantas said it would continue to invest in its fleet with seven new aircraft for the second half of FY25, including the arrival of Qantas’ first A321XLR, expected in June.
Other upgrades include two A220s and four additional Jetstar aircraft and improvements to Qantas’ 737 cabins, the airline said in its results.
Qantas shares were last trading at $9.39 each, up almost 6 per cent, following the half-year results.
Ms Hudson said the company’s performance highlighted the benefits of having both a premium and a low fares airline
“With a growing fleet of new aircraft, Jetstar went from strength to strength delivering a better experience for customers and an improved financial performance,” she said.
“Importantly, Jetstar was able to help more Australians take a holiday for less.
“Qantas Domestic revenue grew strongly and, like Jetstar, will see significant benefits as its fleet renewal ramps up, starting with the arrival of the A321XLR in the coming months.”
The Australian Competition and Consumer Commission flagged its approval over the Virgin-Qatar alliance earlier this month.
Known as a ‘wet lease’ arrangement, Virgin Australia would use Qatar's aircraft and crew for the new 28 weekly return services between Doha and Australia.
In October, ACCC received Qantas' submission over the proposed alliance which showed the airline had some concerns over the wet lease.
"The Qantas Group doesn’t object to the investment in Virgin Australia by Qatar Airways, however there are some aspects of the partnership that may result in a public detriment that deserve further scrutiny," Qantas submission reads.
"In particular, given the proposed conduct is going to occur through a wet lease, its potential to impact competition in the sector over the long term should be assessed.
"Wet leases are common in aviation and can deliver benefits for consumers and help carriers meet short-term demand.
"Indeed, Qantas has its own, including with Finnair. However, without some limits, they can be used to side-step domestic laws and regulation.
"As already raised in public statements by various union officials, the proposed wet lease enables Virgin Australia to schedule services crewed entirely with Qatari pilots and crew, whose pay and conditions are substantially less than Australian-based crew."
Dr Chalmers said his decision to approve Qatar's acquisition for 25 per cent of Virgin followed extensive cross-government consultation by the Treasury, industry, unions and relevant stakeholders.
"This decision comes after the draft determination by the ACCC to allow the airlines to engage in co‑operative conduct under an integrated alliance for five years," he said.
"On the advice of Foreign Review Investment Board, I have approved this proposal subject to legally enforceable conditions that ensure Australian representation on Virgin’s board and protection of its customer data.
"It will increase Virgin Australia’s capacity on key international routes and provides a long‑term pathway for the airline to operate its own long‑haul flights."
