Qantas flags boosted profit of up to $1.45 billion for early 2023

Qantas has flagged a boosted profit for the first half of 2023, as travel demand continues to soar.

Qantas Group said in a release it now expected a before-tax profit of between $1.35 billion and $1.45 billion - $150 million higher than the profit range predicted in early October.

"Consumers continue to put a high priority on travel ahead of other spending categories and there are signs that limits on international capacity are driving more domestic leisure demand, benefiting Australian tourism," the airline said.

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However, fuel costs are expected to reach about $5 billion for the 2023 financial year - a record high despite Qantas still running at about 70 per cent of its pre-COVID international capacity.

Qantas said a $200 million investment in additional staff would help maintain its improved operational performance throughout the new COVID-19 wave, and the busy holiday period.

The Group's net debt is now expected to fall to an estimated $2.3 billion-$2.5 billion by December 31 this year, about $900 million better than previous estimates.

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About 20,000 non-executive employees are set to receive a $5000 bonus, and up to 1000 Qantas shares (currently valued at about $6000) subject to meeting key conditions.

The airline said capacity remained "constrained", despite over a million sale fares being launched in October.

"The Group is adding capacity as quickly as possible in the second half of the year while maintaining operational reliability," the release said.