Qantas Profits Soar to $1.4 Billion as Budget Travel Booms

Qantas has just posted a massive $1.4 billion profit for the half-year ending in December, riding the wave of a travel boom and strong demand for budget-friendly flights.

The airline’s pre-tax profit jumped 11% to $1.39 billion—up $140 million from the previous six months. Thanks to this strong performance, Qantas is rewarding its shareholders with dividends for the first time since 2019, announcing a total payout of $400 million.

One of the biggest drivers of this profit surge? Budget travel. As Aussies continue to feel the pinch of the cost-of-living crisis, more people are opting for cheaper flights, sending Jetstar’s earnings up 35%. Both Qantas and Jetstar carried almost 10% more passengers in the past six months, showing just how strong demand for travel remains.

Qantas CEO Vanessa Hudson says the airline’s financial health means they can invest more in their fleet and improve the customer experience. “Qantas and Jetstar made travel possible for more Australians, carrying 28 million customers, with around one-third of Jetstar passengers flying for under $100,” she said.

Qantas’ frequent flyer program has also played a big role in boosting profits. Membership hit 17 million by December—an 11% increase—with around 13,000 classic reward seats booked every day.

Despite the big earnings, Qantas is keeping its net debt in check, holding steady at $4.1 billion. It’s clear that even with economic pressures, Aussies aren’t giving up on travel anytime soon.