Australia’s national carrier Qantas has forecast it will make a record-breaking pre-tax profit of $2.5bn for the 2023 financial year.
In a statement to the ASX, Qantas Group credited an increased demand in travel, plus the arrival of new aircraft, plus the return of widebody jest from long-term storage.
The group reported that by the first half of the 2022-23 financial year, domestic travel had returned to 104 per cent of pre-Covid levels.
Meanwhile international travel is currently above 80 per cent, it’s expected to match pre-pandemic rates by March 2024.
Qantas CEO Alan Joyce said trading conditions were “very positive”.
“More parts of the aviation supply chain are returning to normal which means we’re able to put some of the spare aircraft and crew we kept in reserve back in the schedule,” he said in a statement to the ASX.
“That’s combining with lower fuel prices to put downward pressure on fares which is good news for customers.”
Mr Joyce said they will be bringing out the last of their stored aircraft, and were “on track” to add another eight new aircrafts by the end of 2023, to increase their flying capacity.
“The industry remains capacity constrained and the travel category remains strong, so there’s still a mismatch between supply and demand that’s likely to persist for some time, especially for international flying,” he said.
The group’s net debt is expected to be between $2700m and $2900m, with it’s on-market buy-back increased by up to $100m.
Local recovery has been boosted by an increase in flying between Sydney, Melbourne and Brisbane, dubbed the “Golden Triangle” by Qantas.
However, the group revealed its international capacity was hampered by operational delays and staff shortages across the industry.
Domestic revenue intakes are currently sitting at 118 per cent of levels since before the Covid pandemic, while international profits are at 123 per cent.