Lower airfares, an in-flight offer, and a $183m profit hit: What came out of Qantas' results

Airfares are down about 10 per cent since they peaked, Qantas says, as it announced new additions to its fleet and revealed profits had slipped.

Qantas has released its latest half-year results. Source: AP / Mark Baker

Key Points

• Qantas has released its latest half-year results, announcing a 13 per cent drop in its underlying profits.
• The airline reported it made a $1.25 billion underlying profit before tax for the six months to December.
• Lower fares cut profits by around $600 million, but this was mostly offset by increased flying, according to Qantas.

Qantas has announced a 13 per cent drop in its underlying profit for the half year, as the airline revealed new QantasLink planes and plans to offer free Wi-Fi on international flights.

The airline reported on Thursday it made a $1.25 billion underlying profit before tax for the six months to December, down $183 million, or 12.8 per cent, from a year ago.

That was up from the $1.16 billion that analysts had expected.

Revenue was up 12.3 per cent to $11.1 billion.

Airfares normalising

Lower fares cut Qantas' profit by around $600 million, although this was mostly off set by increased flying, which boosted profit by $485 million.

Fares are down more than 10 per cent since peaking in late 2022, Qantas said.

The airline will not pay a dividend but announced another $400 million share buyback, on top of the $500 million one announced in August that is nearly complete.

Qantas chief Vanessa Hudson announced the airline's half-year profits were down by 12.8 per cent. Source: AAP / Dan Himbrechts

The report is Qantas' first under new chief executive Vanessa Hudson, who said on Thursday the airline's customer satisfaction levels had bounced back strongly since December.

"We know that millions of Australians rely on us and we've heard their feedback loud and clear," she said.

Hudson took over from Alan Joyce in September when the high-profile chief executive moved forward his retirement.

The airline had weathered with a series of controversies including a $250 million fine from the consumer watchdog, a High Court loss over illegally sacking workers, and a Senate grilling on profits.

Qantas' new aircraft

Qantas announced that QantasLink had taken delivery of the first two of 29 Airbus A220 jets that will replace its ageing fleet of Boeing 717s.

The 137-seat A220s will fly between cities including Melbourne, Hobart, Brisbane and Canberra, as well as Coffs Harbour and Launceston.

QantasLink's fleet of Boeing 717s is being phased out, and will be replaced by Airbus A220s. Source: AAP / Dan Himbrechts

The A220s have double the range of the 717s, will burn less fuel, have more overhead locker space and will feature fast, free Wi-Fi, Qantas said.

The airline also said it had ordered another eight Airbus A321XLRs for domestic flights, bringing its order to 28. The 200-seat jets will progressively replace its 737s when they begin arriving in early 2025.

Free Wi-Fi

Qantas said it will start offering fast and free Wi-Fi on international flights, a service that will be progressively switched on as jets are retrofitted starting at the end of this year.

The service will come to Qantas' Airbus A330s this year, its A380s and Boeing 787s next year and Jetstar's widebody fleet from 2026.