Qantas Raises Revenue Forecasts, Shares Reach Record High on Strong Demand

Qantas Airways has increased its first-half domestic revenue expectations, driven by strong travel demand in Australia. The airline, led by new CEO Vanessa Hudson and Chair John Mullen, also expects to resume dividend payments by the second half of the financial year, a move that sent its shares to a record high of A$8.04 on Friday. This forecasted growth marks a comeback for Qantas, following a challenging 18 months marked by regulatory issues and customer dissatisfaction.

Qantas now anticipates a 3% to 5% increase in domestic revenue per available seat kilometer (RASK) for the first half ending December 31, an improvement from its initial estimate of 2% to 4%. International RASK, however, is projected to decrease by 7% to 10% as competing airlines restore capacity and airfares normalize.

Hudson highlighted the strength of domestic travel demand, particularly with Jetstar’s improved performance and steady corporate travel growth. Additionally, Qantas adjusted its first-half jet fuel costs to A$2.55 billion, down from A$2.7 billion due to falling global fuel prices.

At Qantas’ annual meeting, Mullen assured shareholders of the airline’s commitment to learning from past missteps, noting that the company’s balance sheet and reputation were being restored. The company’s share buyback program, valued at A$400 million, is 45% complete, with an average repurchase price of A$7.23, and is expected to finish by year-end. Looking forward, Qantas is well-positioned to remain competitive, supported by stronger financials and a resilient travel market.