Australia’s Qantas Airways said its long-serving CEO would bring forward his retirement amid a publicity firestorm over an accusation of illegal ticket sales, signaling what the flagship carrier hopes is the end of a tumultuous period.
25.08.2023 - 14:30 / skift.com / Qantas Airways
Australia’s Qantas Airways Ltd raised its first-half pre-tax profit outlook on Wednesday on strong travel demand, with limits on international capacity helping boost domestic tourism, sending its shares to more than a two-year high.
In its second profit upgrade in six weeks, the carrier expects first-half underlying profit before tax between A$1.35 billion and A$1.45 billion ($898.02 million and $964.54 million), above prior expectation of between A$1.2 billion and A$1.3 billion ($800 million and $870 milion).
That is above UBS forecast of A$1.2 billion, and is a turnaround from last year’s underlying loss before tax of A$1.28 billion.
Shares of the airline jumped as much as 6.1 percent to A$6.23 ($4.2), their highest level since February 24, 2020, and were the second biggest gainer in the ASX 200 benchmark index.
“Consumers continue to put a high priority on travel ahead of other spending categories and there are signs that limits on international capacity are driving more domestic leisure demand, benefiting Australian tourism,” Qantas said.
Analysts at UBS in a note said “strong demand plus Qantas’ strategy to focus on profitability rather than growth will support earnings momentum into financial year 2024.”
“Domestically, the market structure means rational capacity and high cost pass-through; internationally, we expect international airlines to reinstate more capacity, however global constraints on growth, especially fleet and labor, will likely persist for years.”
Qantas now also expects its net debt to be between A$2.3 billion ($1.53 billion) and A$2.5 billion ($1.66 billion) by 2022 end, A$900 million ($600 million) lower than its previous estimate.
“Low levels of net debt put the board in a position to consider future shareholder returns in February 2023,” the airline said, adding 76 percent of the A$400 million ($266 million) share buyback program announced in August has been completed.
UBS expects Qantas to announce additional share buy-backs of A$300 million ($200 million) in second-half of fiscal 2023 and A$500 million ($333 million) in fiscal 2024.
Australia’s Qantas Airways said its long-serving CEO would bring forward his retirement amid a publicity firestorm over an accusation of illegal ticket sales, signaling what the flagship carrier hopes is the end of a tumultuous period.
In 2021, the Pretty Rocks Landslide on Denali Park Road in Alaska shut off the only driving route to the old mining town of Kantisha. The closure is predicted to continue until 2026, cutting off access on the iconic 92-mile road in Denali National Park. This means that Kantishna, previously a popular destination for day visitors to the park, is now only accessible by air. It takes a helicopter over the glaciers, braided rivers, and multi-colored mountain peaks with America’s tallest mountain, Denali, in the background. In short, it’s become an exclusive destination that only a small percentage of visitors have a chance to access.
Cricket is the most popular sport in India and has a huge fan base. Beyond just being a sport, it is deeply embedded in the nation’s culture, evoking intense emotions from the masses over the victories and losses of their favorite teams: 90% of the global cricket fandom consists of Indians, highlighting the cricket craze in the country.
Ryanair on Monday posted its largest ever after-tax profit for its key summer season and said it expected very strong passenger and fare growth for years to come as customers switch from higher-cost rivals.
American Express Global Business Travel has partnered with Emirates Group-owned dnata to offer its global clients more local expertise in the Middle East region.
Capital A Berhad, the parent of Malaysian budget airline AirAsia, reported a narrower third-quarter operating loss on Wednesday, buoyed by a strong rebound in travel demand and the easing of pandemic-related restrictions in Southeast Asia.
U.S. airlines and airports are preparing for a surge in passengers over the Thanksgiving holiday, with the number of travelers expected to hit the highest level in three years.
Travel giant TUI (TUIGn.DE) reported on Friday a boost in demand for luxury holidays, driving sales for the winter 2022/23 period higher than they had been in the corresponding 2018/19 period, before the COVID-19 pandemic hit international travel.
Mastercard Inc forecast current-quarter revenue growth short of Wall Street estimates on Thursday, saying the boost from pent-up demand for travel will diminish going forward.
Bain Capital said on Monday it is looking to relist airline Virgin Australia, in a move that would come as the domestic aviation market bounces back strongly from pandemic lows.
Hotel booking startup, Safara, is hoping to use curated lists and invite-only memberships to meet the high expectations of millennials and Gen Z travelers.
Company spending on co-working spaces is on the up, while business travel is declining, according to corporate card and expense firm Ramp.