Investing.com - In his final year as CEO, Alan Joyce steered Qantas Airways Ltd (ASX:QAN) towards an all-time high profit of $2.5 billion. This achievement was announced last Thursday and comes after a challenging three-year period dominated by the COVID-19 pandemic.
Despite grappling with a debt that exceeded $7 billion, Australia's largest airline managed to achieve an underlying profit of approximately $2.47 billion for the fiscal year ending June 30th, contrasting starkly with the previous year's loss of $860 million. The company also reported more than doubling its revenue to nearly $20 billion in financial 2023 from just over half that amount in financial 2022.
The impressive figures are indicative of a significant financial turnaround for Qantas Group during this past year alone. According to Joyce, the shift from heavy losses to robust profits has enabled substantial future investments worth billions.
Owing much to their favorable monetary status, Qantas is planning expansive enhancements including new aircraft acquisitions, exploring fresh destinations, and improving training facilities - all aimed at bolstering their future performance.
As part of their growth strategy amidst global recovery from the pandemic effects on travel – similar trends can be seen across other international airlines like Singapore Airlines and Emirates – Qantas has ordered two dozen aircraft set to gradually replace aging Airbus A330s over the next ten years; split evenly between Airbus A350s and Boeing (NYSE:BA) 787s models.
Travelers (NYSE:TRV) concerned about surging ticket prices since border controls eased in late 2022 will find comfort knowing they have peaked according to Joyce’s statement; current domestic fares sit around four percent higher than pre-COVID levels while international tickets saw a 10% increase.
This record-breaking result surpasses Qantas' prior best performance by nearly one billion dollars when it recorded profits totaling A$1.6 billion back in fiscal year 2018.
Earlier this May, anticipating these historic results based on projections ranging between roughly $2.43-$2.48 billion profits, Qantas increased its market buyback up to an additional A$100 million, hinting at strong investor confidence underpinned by solid business fundamentals.
The company also recently revealed plans for another shareholder buyback valued at half a billion dollars scheduled next month, adding onto already returned one-billion dollars during last fiscal year and further asserting commitment towards rewarding shareholders.
After successfully leading Australia’s biggest airline into uncharted territory despite adversity faced throughout his tenure spanning over fifteen years, Alan Joyce is set to step down as CEO post annual general meeting slated November handing the reins to Vanessa Hudson who is currently serving as chief financial officer.