Qantas profits jump to $1.4 billion as demand for 'budget' travel surges
Australia's biggest airline Qantas has recorded a nearly $1.4 billion profit for its half-year results ending in December.
The airline revealed its strong results were partly thanks to a bounce back in travel and tourism, with profit before tax jumping 11 per cent to $1.39 billion – up $140 million from the previous six months.
Qantas will also pay shareholders a dividend for the first time since 2019, before the COVID-19 pandemic began.
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Australia's biggest airline Qantas recorded a nearly $1.4 billion profit. Getty
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It announced today $250 million in base dividends and $150 million in special dividends would be paid to shareholders.
Profits were fairly evenly split between Qantas' domestic and international offerings thanks to "strong" consumer demand for travel.
The cost of living crisis resulted in a spike in demand for budget travel, which helped push Jetstar earnings up by 35 per cent.
Both Qantas and Jetstar's domestic and international businesses carried almost 10 per cent more customers for the half-year until December 31.
"Having a strong business means we can invest in our customers and our people, including our largest ever fleet renewal and cabin overhaul programs," Qantas chief executive Vanessa Hudson said in a statement to the ASX.
"Qantas and Jetstar made travel possible for more Australians, carrying 28 million customers, with around one third of Jetstar customers travelling for under $100 at a time of ongoing cost of living pressures."
Qantas' famous loyalty program also contributed to the healthy profit boost.
Qantas' budget offering Jetstar also enjoyed a profit boost. Supplied
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Membership reached 17 million by December last year, an 11 per cent jump in customers.
Around 13,000 classic reward seats are booked on average every single day through Qantas.
"Australians have always loved to travel and continue to prioritise it over other spending options," Hudson added.
The airline's net debt remained steady at $4.1 billion as of December 31.
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