Qantas FY24 Annual Financial Results

[justinbrett]

and room for both QFi and JQ eg HNL, DPS etc

Exactly. That’s the whole Virgin Pincer movement that’s worked pretty well for them so far. Why on earth would they give VA an opening to pick up the business market? Makes absolutely no sense.

 

[milehighclub]

I haven't had a chance to read all the results because I was genuinely blown away by the fact that Qantas is offering all cabin crew working under QCCA, direct employment under Qantas, along with big pay rises to cabin crew that work for QD/QCCA/MAM/Altara.

 

[jrfsp]

I haven't had a chance to read all the results because I was genuinely blown away by the fact that Qantas is offering all cabin crew working under QCCA, direct employment under Qantas, along with big pay rises to cabin crew that work for QD/QCCA/MAM/Altara.

due to the government bringing in same job same pay legislation- not brought out of the goodness of their hearts

 

[Saab34]

Net debt increased considerably and QF Intl earnings and margins nearly halved.

And most of the planned fleet renewal hasn't yet been paid for!

Keep an eye on International, non Sunrise. They have tried to lesson the concern it seems by ‘forecasting’ that Q4 FY25 will see a return to margin growth, not sure what they are seeing that far head. I assume the expected reduction in rates later on this FY they expect an larger uptick in Q4.

Certainly considerable financial commitments ahead, any slowdown in QFi will be somewhat problematic for funding all this. That might be somewhat saved by Jetstar and Loyalty punching above their weight.

I’d be watching QFi numbers fairly closely in the coming two FYs. Has historically been vulnerable to competitor capacity growth and it seems more is coming, we have yet to see if Qatar gets further approval for more flights, another player to join us from Saudia soon also. I’d say the International honeymoon is somewhat over.

 

[milehighclub]

due to the government bringing in same job same pay legislation- not brought out of the goodness of their hearts

Agree but being employed by Qantas is not part of the legislation and that has benefits as well to those crew

 

[Mattg]

I had a read through everything and a few things stood out to me:

• QFF now has 16.4 million members (although I wonder how many of those accounts are actually active currently - at least a few hundred thousand of those members are probably dead by now, but their accounts never got closed)
• In FY24, 202 billion points were earned but only 171 billion redeemed. This means Qantas' unredeemed points liability has grown even further
• 300,000 people applied for Qantas co-branded credit cards (up 21%), and 35% of credit cards in Australia earn Qantas points
• QF revenue from third parties paying to access its lounges (e.g. when a CX customer uses the QF lounge in HKG) was up
• Qantas Club and Club Jetstar revenue up

 

[CaptJCool]

I haven't had a chance to read all the results because I was genuinely blown away by the fact that Qantas is offering all cabin crew working under QCCA, direct employment under Qantas, along with big pay rises to cabin crew that work for QD/QCCA/MAM/Altara.

The QF wages gap is $60 million pa
https://investor.qantas.com/DownloadFile.axd?file=/Report/ComNews/20240829/02845250.pdf
That’s how much less they were paying at least short haul cabin crew

And more to come with QFi & JQ forced to the table too


As well
Here’s the key points

Tax losses are nearly exhausted. Churn this amount of revenue and you’ll be paying income tax
Currently no dividends (taxed as income) but plenty of share buybacks (taxed as capital gains so 50% discounts etc)



RRIA
Well this looks complicated but is hiding two problems in plain sight

1. Current FF Revenue continues to blow higher - the positive is the non-current liability has been cutback
What they describe as member engagement might well be people cashing in their long terms points earns for CR or CR+ and making a bolt for the exit door
And then there was the COVID credits
AND the Customer Remediation project

2. Forward PAX revenue is $300 million LESS than the same time last year - QF Dom hardly scored a PAX uplift (3.5%) and forward projections suggest a 2% lower PAX Volumes

QFi can’t keep charging those 2023 Rugby World Cup fares so while PAX international volumes are actually buoyant the overall “money in the door” isn’t.