Qantas Airways Ltd. (QAN.AX, QUBSF.PK) has announced a decrease in profit attributable to members for the fiscal year ending June 30, 2024. The company’s profits fell to A$1.255 billion, or 75.1 cents per share, from A$1.746 billion, or 93.0 cents per share, in the previous year. This reduction in earnings is attributed to moderating fares in response to market capacity return, increased spending on customer initiatives, and a significant decline in freight revenue primarily during the first half of the year.In addition, Qantas has revealed a new on-market share buy-back scheme of up to A$400 million.The underlying profit before tax for the fiscal year 2023/24 stood at A$2.078 billion, which marks a decrease of A$387 million compared to the 2022/23 fiscal year. Despite this, the company’s revenue and other income rose to A$21.94 billion from A$19.82 billion the previous year.To acknowledge the efforts of non-executive employees, Qantas will provide 23,000 staff members with a A$500 travel voucher to be used on already discounted standby fares. This adds to the A$500 voucher distributed in February, totaling A$1,000 for the year.Looking forward, Qantas anticipates stable travel demand with positive revenue momentum into the first half of 2025. Group Domestic unit revenue is projected to increase by 2%-4% in the first half of the fiscal year compared to the previous year, while Group International unit revenue is expected to decline by 7%-10% due to the restoration of market capacity. However, this decline is expected to slow, with a positive turn predicted for the fourth quarter. Additionally, net freight revenue for the first half of 2025 is forecast to be A$20 million to A$40 million higher than the same period last year.Qantas has also reached a significant agreement with the Flight Attendants Association of Australia (FAAA), supporting the union’s three Same Job Same Pay applications for short-haul cabin crew with the Fair Work Commission (FWC). This comes after the Labor Government passed the ‘Same Job Same Pay’ legislation in December, affecting workforce arrangements at Qantas and other businesses.The airline has also negotiated an in-principle agreement with the FAAA for long-haul cabin crew, aiming to balance the impacts of new legislation. This agreement will ensure approximately 2,500 international crew receive pay increases in line with short-haul crew and gain access to the new A350-1000 Ultra Long Range aircraft, part of Project Sunrise flights.The proposed changes are subject to an employee vote, and Qantas will continue discussions with long-haul cabin crew and their representatives. The gross cost impact of these changes is estimated to be around A$60 million for fiscal year 2025, starting from November 1, 2024.The material has been provided by InstaForex Company – www.instaforex.com
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