Qantas shares have soared to their highest levels since the start of the COVID-19 pandemic after the carrier said it now expects to return to the black six months earlier than previously expected and post more than $1 billion in profits in the first half of the financial year.
In a trading update to investors on Thursday morning, Australia’s largest airline predicted an underlying profit before tax of between $1.2 billion and $1.3 billion for the first six months of its financial year, despite the burden of higher jet fuel prices and the high inflation’s impact on consumer spending. Shares surged by as much as 12 per cent, and were trading at $5.80 at midday.
The forecast beat analyst expectations which predicted Qantas to return to profit by the end of FY23. Qantas shares rallied after the announcement, soaring 12.6 per cent to $5.82 in early trading.
“Delivering pre-COVID levels of performance requires more than pre-COVID levels of resources,” says Qantas boss Alan Joyce.Credit:Peter Rae
Chief executive Alan Joyce dismissed suggestions the airline’s growth may inflame tensions with employees and travellers who’ve been subject to poor service and working conditions, arguing the operational issues experienced earlier this year wreaked havoc across the entire industry.
“What’s become clear is delivering pre-COVID levels of performance requires more than pre-COVID levels of resources,” Joyce said.
He also denied that management was at odds with staff, despite multiple threats of industrial action over working conditions and pay, and ruled out quitting as chief executive for the second time in a matter of months.
“There is disengagement with a couple of union leaders, not with our employee base,” the Qantas boss said. “Most employees are very pleased we’re offering $10,000 bonuses and significant improvements to staff travel. Don’t misrepresent a couple of union members with a grudge as representative of employees.”
Loading
Seeking to appease employees, Qantas also announced a wage adjustment for about 20,000 employees on Thursday which will see annual pay rises increase from 2 per cent to 3 per cent in recognition of the airline’s quick recovery, at a cost of about 40 million each year. About 5000 employees who have already agreed to 2 per cent as part of their enterprise agreements will be automatically bumped up to 3 per cent.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
