Qantas Posts FY Profit; Orders 12 Airbus A350 And 12 Boeing 787 Aircraft

Qantas Group (QAN.AX,QUBSF.PK) reported a profit in financial year 2022/23 compared to a loss in the prior year, driven by strong travel demand and completion of A$1 billion recovery plan. It also announced an on-market share buy-back of up to A$500 million. In addition, Qantas announced a firm order for 12 Airbus A350 and 12 Boeing 787 aircraft to progressively replace its existing A330s.

Qantas reported that its profit attributable to members of the company for the full year ended 30 June 2023 was A$1.75 billion or 93.0 cents per share compared to a loss of A$860 million or 45.6 cents per share in the previous year.

Annual underlying profit before tax was A$2.47 billion, a significant turnaround from the underlying loss before tax of A$1.86 billion in financial year 2021/22.

Annual revenue and other income jumped to A$19.82 billion from A$9.11 billion in the prior year.

Qantas announced the final piece of its jet fleet renewal program with a firm order for 24 aircraft to progressively replace its existing A330s.

Qantas noted that the multi-billion dollar order is split between 12 Airbus A350s and 12 Boeing 787s arriving from fiscal year 2027 into the next decade. The Group has also negotiated additional purchase right options, split evenly between both manufacturers, to give flexibility for future growth and ultimately replace its 10 A380s with A350s from around fiscal year 2032 onwards.

As part of the deal with both Airbus and Boeing, Qantas will secure access to up to 500 million litres of Sustainable Aviation Fuel (SAF) per annum that would start to flow from 2028. It has the potential to meet up to 90 per cent of Qantas’ interim SAF target for 2030.

In addition, Qantas Group said it is on track to receive the first two QantasLink A220 aircraft by the end of this calendar year; subsequent deliveries are expected to be delayed by up to four months as a result of supply chain disruption.

The first of seven mid-life A320 family aircraft to meet growing resources flying and Jetstar Asia recovery are expected to arrive before the end of December 2023.

Twenty-two of the previously announced E190s wet-leased from Alliance Airlines are scheduled to have joined the Qantas fleet by the end of December 2023.

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