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‘Strong consumer demand’ drives Qantas 2023 profit upgrade

Air
Will Payne
23 November 2022

A "continued strength in travel demand" from passengers has driven the Qantas Group to upgrade its profit expectations for the first half of 2023.

The group expects an underlying profit before tax of $1.35bn-$1.45bn for the first half of 2023

The group now expects an underlying profit before tax of between $1.35bn and $1.45bn, which represents a $150m increase to the profit range it posted in early October 2022.

The carrier said consumers continue to "put a high priority" on travel ahead of other spending categories, and there are signs limits on international capacity are driving more domestic leisure demand.

Despite the positive outlook, the group said fuel costs "remain significantly elevated" compared with 2019 and are expected to reach approximately $5 billion for 2023, which would be a record high for the group despite international capacity remaining 30% below pre-Covid levels.