Image source: © Mingchai | Megapixl.com

Highlights

  • Qantas Airways offers domestic and international transportation services
  • In FY23, the revenue of Qantas increased by over 117%, driven by improvement in operational performance post COVID
  • Perpetual Investment Management Limited has the highest stake in Qantas, with a shareholding of 5.76%

Qantas Airways Limited (ASX: QAN) is an ASX-listed firm that offers domestic and international air transportation services. Qantas Domestic, Qantas International, Jetstar Group and Qantas Loyalty are the major segments of the airline company. Qantas also has an interest in businesses like travel and holiday operations.

Qantas has been registering losses for the past three years, and in FY23, the company posted a positive bottom line of AUD 1.74 billion. In FY23, the company’s revenue soared by 117.56% over the previous year to AUD 19.8 billion as the operational performance improved substantially after COVID-19. The revenue growth was also driven by a growth of 132% in flying as compared to FY22 and the completion of its AUD 1 billion recovery program.

During FY23, the company registered an underlying EBIT of AUD 2,682 million, compared to a negative underlying EBIT of AUD 1,558 million in FY22. Statutory profit after tax reached AUD 1,744 million in FY23, compared to a negative balance of AUD 860 million in the previous year.

Here are the historical financial metrics of QAN.

Top 10 shareholders of QAN

The top 10 shareholders of QAN have around 16.87% stake in the firm, while the top four shareholders have nearly 10.78% interest. The highest stake is held by Perpetual Investment Management Limited, with a shareholding of approximately 5.76%.

Qantas’ latest business update

Through an ASX filing dated 5 September 2023, the company informed that its CEO – Alan Joyce, has moved forward his retirement by two months to support the firm in accelerating its renewal. With this development, the CEO Designate Vanessa Hudson, will take up the CEO and Managing Director role from 6 September 2023.

In another update dated 4 September 2023, the company commented on ACCC’s allegations. As per QAN,  the claim is related tomid-2022, a time when there was uncertainty across the aviation sector. QAN also faced difficulties restarting its operations in the post-Covid period. The company has acknowledged that its service standards fell short, and it has worked to fix them.

Outlook

The company marked its entry in FY24 with the reoccurring cost benefits of AUD 1 billion, driven by a recovery program and improvement in trading conditions.

In FY24, the group’s domestic capacity is anticipated to remain above pre-Covid levels. Group international capacity is expected to return to 100% of pre-Covid levels in the second half of FY24.

Qantas Loyalty is anticipated to register an EBIT of AUD 500 – 600 million in FY24, and underlying EBIT of more than AUD 500 million is forecasted for 2023.

Share performance of QAN

QAN shares closed 0.18% lower at AUD 5.64 apiece on 5 September 2023. Including this, QAN share price increased by 10.37% in the last 12 months and dropped by around 14.29% in the last six months.

The 52-week high of QAN is AUD 6.94 apiece, recorded on 5 April 2023, and the 52-week low is AUD 4.87 apiece, recorded on 3 October 2022.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 05 September 2023. The reference data in this report has been partly sourced from REFINITIV.