CANBERA (dpa-AFX) - Qantas Group (QAN.AX, QUBSF.PK) said it continues to see first half trading in line with expectations. Both Qantas and Jetstar are seeing stable demand in their respective segments across the portfolio.
Jetstar Domestic's unit revenue is outperforming previous expectations due to stronger than anticipated travel demand. Qantas Domestic's load factors and demand for corporate travel continue to improve year on year.
Group Domestic RASK is now expected to increase 3-5 per cent in the first half of financial year 2025, compared to the prior corresponding period. Previous guidance on Group International RASK remains unchanged and is still expected to fall by between 7-10 per cent compared to the prior corresponding period.
Qantas Loyalty is trading in line with expectations with ongoing strength following the launch of Classic Plus Flight Rewards. The business continues to expect at least 10 per cent Underlying EBIT growth in financial year 2025. The previously disclosed impact of fair value changes from the launch of Classic Plus Flight Rewards is expected to result in lower earnings in the first half of financial year 2025 relative to the prior year.
Today, approximately 27,000 Qantas Group employees were informed about a thank-you payment intended to acknowledge their contributions over the past year. This initiative will incur a total cost of A$28 million, which will be recorded in the first half of the financial year 2025.
The company expects total group capacity growth of 10% for both the first quarter and the fiscal year 2025.
In a separate press release, Qantas has unveiled new Economy seats with larger entertainment screens that will feature across the airline's Airbus A330s which operate international flights to Hong Kong, Singapore and Tokyo as part of a major refurbishment program.
Work on the first A330 is expected to start in mid-2025 in Qantas' Brisbane maintenance facility with the first refurbished aircraft entering service by the end of the calendar year. The refurbishment program is expected to be completed by the end of 2026.
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