Qantas Group’s reported overall FY24 underlying profit before tax of $2.08 billion has come despite a challenging first half of the year for its freight operations, the airline has said.
Overall profit for the national airline fell 16 per cent compared to the prior financial year, with the airline only returning to its pre-Covid international capacity in May 2024 thanks to the return of more aircraft.
In its FY24 results, Qantas Group says the return of that international capacity across the board forced fare costs down across the board in both its freight and passenger operations.
“Group International earnings moderated to $755 million Underlying EBIT as the return of global airline capacity put downward pressure on fares and freight yields declined,” Qantas says.
“Qantas Freight recovered in the second half of the FY24 after a challenging first half, with a continuation of the fleet simplification program introducing two A330 and three A321 freighters this year.
“International freight yields moderated faster than expected but continue to hold more than 150 per cent above pre-Covid levels.”
Following its rebound from a difficult start to FY24, Qantas is expecting its net freight revenue to soar in the first half of FY25 as part of its outlook for the upcoming 12 months.
“Net freight revenue in 1H25 is expected to be $20-40 million higher compared to the first half of last year.”
Qantas Group has also released the cost of its investment in renewable and sustainable practices and regional Australia.
“Sustainability remains a key priority for the Group as it takes action towards its 2030 interim target of 25 per cent net emissions reductions (from 2019 levels,” it says.
“The Qantas Group has committed significant investments in decarbonisation projects through its Climate Fund, including a second round of funding for a sustainable aviation fuel (SAF) project in Townsville, $75 million in an international SAF development fund, and $20 million in a fund targeting Australian high-integrity nature-based carbon projects.
“The Group continued to spend on community initiatives with a focus on having an impact on Australian communities, including a new 10-year partnership with the Great Barrier Reef Foundation and a major new agreement with the Australian Red Cross.
“This builds on a number of regional initiatives including providing $50 million in discounts to remote and regional areas and providing another $2 million in grants for regional communities.”
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