Qantas Airways provides market update; Shares up by over 11%

Qantas Airways Limited (ASX: QAN) has provided market update and guidance for 1H FY2023. The Company highlighted that the robust travel demand is accelerating the it’s recovery from the COVID crisis. Thus, enabling it to keep investing in its people and customer as well as strengthening its balance sheet.

Operational Highlights:

• Domestic travel demand remains robust across all classes.
• Revenue intake for business purposes is over 100% pre-COVID levels & leisure intakes have strengthened to more than 130%.
• Yields from international markets are strong.
• QAN Domestic’s on time performance improved from 67% in August  2022 to 69% in September 2022.
• The cancellation dropped from 4% in August 2022 to 2.4% in September 2022.

Outlook:

• Group assumes Underlying PBT in the range of AU$1.2 billion and AU$1.3 billion in 1H FY2023.
• Net debt is likely to tumble to between AU$3.2 billion and AU$3.4 billion at 31 December 2022.
• Qantas Loyalty anticipates to post record earnings for the 1H FY2023 and is on way to achieve its FY2023 EBIT target of AU$425 – AU$450 million.
• Group International capacity is now anticipated to surge from 61% of pre-COVID levels in 1H FY2023 to 77% in the 2H FY2023.
• Group Domestic capacity will be 94% of pre-COVID levels for 1H FY2023, growing to ~100% for the 2H FY2023.

At AEDT 11:57 AM, QAN shares are trading at AU$5.765, up 11.508% from the previous close. 

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