Qantas Airways, Australia's national carrier, has announced a net profit of A$1.75 billion for the fiscal year ending June 2023, marking a significant turnaround from the A$860 million loss recorded in the previous year. On an underlying basis, the company's profit stood at A$2.47 billion.
The substantial increase in revenue to A$19.82 billion can be attributed to the recovery in travel demand following the impact of the Covid-19 pandemic. Additionally, Qantas implemented price adjustments to further bolster its financial performance.
Building on its positive momentum, the company's board has approved a new share buyback program worth 500 million Australian dollars (US$324 million). This move follows the successful purchase of 161.6 million shares as part of a separate A$1 billion buyback initiative conducted throughout fiscal 2023.
Despite this encouraging development, Qantas has refrained from declaring dividends since December 2019, when governments began imposing travel restrictions to curb the spread of Covid-19. Over the past three fiscal years, the company accumulated statutory losses exceeding A$4.5 billion.
Analysts had projected a statutory net profit of A$1.71 billion and revenue of A$19.62 billion on average, according to data compiled by FactSet. The average underlying profit was forecasted at A$1.74 billion.
Overall, Qantas Airways' return to annual profitability and the introduction of the share buyback program demonstrate a promising resurgence for the renowned airline.
