Qantas Business News: A Look at the Airline’s Latest Financial Results
The COVID-19 pandemic has hit the airline industry hard, forcing many airlines to cut routes, reduce staff and even file for bankruptcy. However, Qantas, one of the world’s oldest airlines, has managed to stay afloat amidst the crisis. In a recent announcement, the Australian airline revealed its latest financial results, and they are worth taking a look at.
Revenue and Profit
Qantas reported a revenue of AUD 2.5 billion in the first half of the 2021 financial year, a decrease of 75% from the same period last year. However, the airline’s underlying profit before tax came in at AUD 6 million, a considerable improvement from the AUD 771 million loss in the previous year. The result was mainly due to the cost-saving measures, which included cutting thousands of jobs, grounding planes and cutting executive salaries.
Domestic Operations
Qantas’ domestic operations had a mixed result. While the airline reported a robust demand for leisure travel, the lack of corporate and international travel continued to weigh down the company’s balance sheet. The airline plans to avoid further job losses by increasing its domestic capacity, boosting its earnings potential.
International Operations
Qantas’ international operations were severely hit by the travel restrictions imposed by governments worldwide. The airline reported a massive decline of 94% in international revenue, a sharp contrast to the 1% increase in domestic revenue. However, Qantas hopes to return to international operations by the end of October 2021, if the government relaxes its travel restrictions.
Frequent Flyer Program
Qantas’ frequent flyer program has been one of the airline’s most significant revenue streams during the pandemic. The program reported a profit of AUD 64 million in the first half of 2021, a significant increase from the previous year’s AUD 26 million. Qantas’ frequent flyer program has been able to entice its customers with attractive reward schemes, which have encouraged customers to keep travelling and using their credit cards.
Conclusion
The COVID-19 pandemic has tested the resilience and adaptability of the airline industry. Qantas, with its well-executed cost-saving measures and a stronger focus on the domestic market, has managed to stay afloat, defying the odds. The airline has reported a reduced but positive profit, and their frequent flyer program has been a game-changer in terms of boosting their revenue. While the future of international travel remains uncertain, Qantas continues to be optimistic that it will be able to resume its international operations later this year.
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