Although Qantas’s half-year net profits declined, the company declared that, under a new CEO, its reputation had “bounced back” after suffering during the Covid-19 outbreak.
As it released its first financial results under new CEO Vanessa Hudson, the 103-year-old airline claimed that customer satisfaction had increased despite the decline in profitability.
Her predecessor, seasoned Qantas employee Alan Joyce, announced his early retirement in September after constant criticism of the once-loved airline for its treatment of employees, skyrocketing ticket costs, and poor service.
“We know that millions of Australians rely on us and we’ve heard their feedback loud and clear,” Hudson said.
“There’s a lot of work happening to lift our service levels, and the early signs are really positive,” the chief executive said.
“Our customer satisfaction levels have bounced back strongly since December and we have more service and product improvements in the pipeline.”
In the six months ending December 31, Qantas reported a 13.2 percent year-over-year decline in net profit to Aus$869 million (US$570 million).
It said that revenue increased 12.3% to Aus$11.1 billion.
However, overall expenses increased, partly due to increased pay, fuel, and aircraft operating costs.
According to Qantas, corporate travel is already back to pre-Covid-19 levels, while leisure travel is still the main driver of the robust travel demand.
Fares had fallen by more than 10 percent from a late 2022 peak.Qantas said it saw “strong demand” across its business.
Unit revenue was expected to remain stable in domestic operations and “continue to normalise” for international flights as market capacity expanded, it said.
Seat capacity in Qantas’ international operations was now at 90 percent of pre-pandemic levels, the airline said, up 25 percent from a year earlier.
A day before announcing its results, Qantas named corporate executive John Mullen its new chairman-elect from July 1.He will take over from Richard Goyder, who is stepping down under pressure from shareholders seeking a boardroom renewal at the airline.
