On Tuesday, Qantas Airways (QAN.AX) predicted that its international divisions would be twice as profitable in the post-COVID era due to a tourism boom, with domestic and loyalty sectors also rising.
In fiscal 2024, Australia’s flagship carrier’s international profits are forecast to grow over 8%, and its long-haul travel program Project Sunrise will debut in late 2025, boosting margins to 12%.
“This is a structurally different business than it was before COVID, operating in markets that have also changed,” Qantas’ outgoing CEO Alan Joyce said.
After all 12 Airbus A350-1000s fly from Sydney to London and New York, Project Sunrise is estimated to make over A$400 million ($261 million) annually.
Qantas expects its Loyalty division to reach its fiscal 2024 earnings before interest and taxes target of A$500–A$600 million, expanding to A$800–A$1 billion by fiscal 2030.
Qantas affirmed its February 2024 capital expenditure plan of A$3–3.2 billion. Fiscal 2023 was A$2.6 billion to A$2.7 billion.
Qantas shares surged 1.8% at 0300 GMT, their greatest intraday rise in nearly a week.
