Qantas will pay its first dividend since the pandemic after revealing a solid half-year profit on the back on robust demand, with the lower-cost Jetstar division benefiting from budget-savvy travellers and growing capacity.
Profit after tax for the Qantas group – including Jetstar – rose 6 per cent to $923 million. Underlying profit before tax jumped 11 per cent to $1.4 billion in the six months to December 31, with customer numbers increasing almost 10 per cent on Qantas and Jetstar, the airline said on Thursday.
Qantas Chief Executive Officer Vanessa Hudson.Credit: Dominic Lorrimer
โThere is a continued strong appetite for demand, both in terms of premium and also low-cost travel,โ CEO Vanessa Hudson, told reporters in Melbourne.
The airline declared it would pay shareholders $250 million in base dividends and $150 million by way of a special dividend, taking its payout for the December half to 26.4 cents a share, fully franked.
Itโs the first dividend in six years for Qantas shareholders after the nationโs biggest carrier works to get back on track after years of scandals and a damning government review.
โWe have many retail shareholders,โHudson said. โThis is a fantastic opportunity to share in our profit with them.โ
The bumper $1.4 billion profit and the dividend were more than the market expected, Jarden analysts said in a note to their clients.
Investors cheered the result, pushing Qantas shares up 7.1 per cent shortly before noon.
Domestic travel grew by 5 per cent on an underlying earnings before interest and taxes basis for the group. However, average group international fares fell 6.6 per cent as the global market for travel continued to recover in the post-pandemic period.
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