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Qantas’ Half Yearly Report is in, and the results were excellent highlighting its
continued post COVID recovery. CEO Vanessa Hudson announced a $1.385 billion
half-year profit, the airline’s second-best ever, up 6% from the same period last year.
Qantas declared its first dividend since the onset of the COVID as shares near
record highs.

Strong travel demand and high fares boosted results, with Qantas and Jetstar
carrying 10% more passengers. Jetstar led the group with a 35% earnings increase.

Qantas is upgrading its ageing fleet with a multimillion-dollar Boeing 737 cabin
refurbishment, including new carpets, sidewalls, and mood lighting.
Meanwhile, 28 new A321XLRs will start arriving in June as part of its domestic fleet renewal.
The airline plans to spend up to $3.9 billion on new aircraft and refurbishments this
year, rising to $4.3 billion next year. Project Sunrise flights are now set for 2027, with
the first A350-1000 arriving late next year instead of mid-2026.

Qantas’ half-year results show the airline is well-positioned to compete with a
revitalised, Qatar-backed Virgin Australia. The results were released just hours after
federal treasurer Jim Chalmers approved Qatar Airways’ 25% stake in Virgin
Australia. This investment will enable Virgin to relaunch long-haul international
services—initially using planes and crew leased from Qatar Airways—and gain
access to Qatar’s global network.

Virgin increased its domestic market share by 3.1% in the second half of 2024,
reaching 35%, while the Qantas/Jetstar combination held 63.6%. In a further boost,
recent data ranked Virgin as the most reliable airline group. It landed 76.9% of flights
on time, compared to Qantas’ 75.6%, and had a lower cancellation rate—just 0.9%
versus Qantas’ 2.4%.

On the industrial relations front, after more than 18 months of negotiations, 60% of
Qantas’ 750 short-haul pilots approved a new EBA. The agreement includes a 25%
total pay increase over five years, with no raises in 2023 and 2024, followed by 3%
annual increases for the next three years. Pilots who sign on will also receive a
$5,000 bonus and a one-year service upgrade, adding another 2.5% in value.

Source: Has Virgin stolen Qantas crown by Robyn Ironside The Australian Feb 23 rd ,
Qantas gets new pilots deal over the line by Robyn Ironside The Australian Feb 24 th ,
Qantas posts $1.39B profit as holiday makers flock to Jetstar by Elias Visontay The
Guardian Feb 27 th , Qantas bets on a big refresh ahead of looming Virgin-Qatar battle
by Robyn Ironside The Australian Feb 27 th .