Qantas post-tax profit falls to $1.25b as it invests in repairing reputation

Qantas posted a $1.25 billion profit in the 2023-24 financial year, which was down by 28 per cent from the prior year.

And experts say the "dented" figure is a result of the national carrier's efforts to rebuild its damaged reputation.

The airline attributed the reduction in profit to moderating airfares, customer initiatives, new aircrafts and reducing freight revenue.

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Despite the falls in profit, Qantas and its budget airline Jetstar both reported seeing "significant improvements" in customer satisfaction off the back of investments into operations, better food and drinks, a digital platform overhaul and more frequent flyer seats.

In the year to June 30, Qantas spent $230 million in additional customer investment.

"The investment in operational reliability and customer initiatives delivered a positive improvement in on time performance and customer satisfaction with Qantas ending the year as the most on time major domestic airline," Qantas chief executive Vanessa Hudson said.

Qantas said 80 per cent of its flights departed on time, compared to 74 per cent of Jetstar's.

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Its mishandled baggage rates also dropped by almost a third, which the airline said was better than pre-COVID levels.

The carrier amassed $3.1 billion in capital expenditure as it bought 11 new aircrafts to expand its Jetstar Airbus and QantasLink fleet.

The airline said these improve "operating cost, network flexibility, passenger comfort and emissions".

Qantas also posted that all 23,000 of its non-executive employees were awarded with yet another $500 travel voucher. Employees also received $500 vouchers in February.

Qantas' efforts to restore its reputation, which has coincided with moderating airfares, has left the airline with dented profits, eToro market analyst Josh Gilbert said.

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"Everything comes with a price and the cost of rebuilding Qantas' tarnished public perception through improved customer initiatives is hurting its bottom line," he said.

"Hudson had a mammoth task when taking over as CEO, balancing shareholder happiness and consumers' confidence alongside satisfying regulators.

"Alan Joyce left the business with record profits, but his focus on customers left a lot to be desired."

Gilbert anticipates company shares to be impacted due to this focus but said it was a "crucial decision" and a "necessity" for the airline to secure its future.

"Its journey in the next year will certainly be a turbulent one; managing ongoing ACCC investigations, continuing to repair its damaged reputation and navigating increased spending," he said.

"It won't be a one-way flight to success, but it feels like Qantas' is making the right moves at the right times to get back to its best."