Traveller amnesia and pricey fares deliver Qantas its best ever profit

But behind these numbers is an even more extraordinary financial performance. Had Qantas not decided to apply an additional $900 million in cash to paying down debt, the half-year profit could have been significantly higher.

It is hardly surprising that Qantas’ share price has experienced a similar trajectory – it has bolted ahead by 45 per cent since July when an unhappy mob of customers were chasing Joyce with pitchforks.

As pricey as interstate travel has become, international travel is off the charts, both for economy and business class.

Ultimately, consumers’ desire for airline travel trumped any Qantas boycott as did their lack of choice. A market with only two and a half operators will ensure patronage for all in a period of thirsty travel-demand. Strong forward bookings also suggest airfares will remain elevated into the first six months of calendar 2023.

But in the medium term these fares are unsustainable as higher cost of living and the rise in interest rates place a ceiling on the capacity of the public to pay big prices for tickets.

Meanwhile, Qantas still needs to clear the 40 per cent of COVID-related travel credits that have not been redeemed.

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Many customers who attempted to rebook the same flights using credits have found prices have doubled or worse and have been unable or disinclined to pay the difference.

Such an experience (although not confined to Qantas) leaves a nasty taste in the mouth.

But as pricey as interstate travel has become, international travel is off the charts, both for economy and business class.

Qantas is running at only 70 per cent capacity in its international division and will continue to ramp this up next year.

But it is also profiting from the cost-induced shift from international travel to domestic flying.

Melbourne Airport chief executive Lorie Argus this week told the Australian Financial Review Infrastructure Summit that sky-high airfares were unsustainable if the sector were to truly recover from COVID-19 but acknowledged it will be a while before airfares fall from current levels, which have not been seen in over a decade.

Qantas shareholders will be overjoyed by the climbing share price, the August-announced $400 million buyback and the tantalising suggestion that there could be more buybacks to come.

But dividends might be a bit more scarce. The company has amassed $7 billion in losses over the pandemic period – so it could take a while to chew through these. Only after this has been achieved can it offer shareholders (tax effective) franked dividends.