Qantas expects up to $1.45 billion in underlying profit before tax in the first half of its financial year.
👉 Background: Back in October, Qantas shocked the market when it said: we expect to return to profit by the end of June 2023.
👉 What happened: But now, Qantas is actually going one better. It now expects up to $1.45 billion in underlying profit before tax in the first half of its financial year. That is up $150 million from its previous guidance given just one month ago.
👉 What else: According to Qantas, consumers continue to put a high priority on travel ahead of other spending categories. And apparently we've all forgotten about the delayed flights and lost baggage of yestermonth.
💡Price tends to lose some of its relevance when demand is so strong. Qantas is experiencing the perfect storm:
💡So the Australian public is clearly willing to pay the prices. And that's why we have seen a massive surge in Qantas’ revenue, cash flow and profit.
💡 Qantas is now heading towards a profit that is 52 per cent higher than its previous record set in 2016. And we're all paying for it. Yikes!
Sign up for Flux and join 100,000 members of the Flux family
