Qantas Group's performance update

Qantas Group (ASX:QAN) has released an update for October 2024, indicating stable demand for both Qantas and Jetstar. Jetstar Domestic's unit revenue has surpassed expectations due to increased travel demand. Meanwhile, Qantas Domestic is experiencing improved load factors and corporate travel demand compared to last year.

Qantas Group's strategic outlook

Qantas Group's October 2024 update outlines stable trading in the first half of the financial year, with Jetstar Domestic exceeding revenue expectations. Qantas Domestic is seeing improvements in load factors and corporate travel demand. The Group anticipates a 3-5% rise in Domestic RASK, although International RASK is expected to fall by 7-10%. The Qantas Loyalty program is performing well, with an expected Underlying EBIT growth of at least 10% for FY2025. Geopolitical tensions are contributing to fuel price volatility, impacting costs. The company has set aside $28 million for thank you payments to employees and is progressing with a $400 million share buy-back. Capacity growth is projected at 11% for the first half of FY2025, with international operations seeing a significant increase.

Executive insights on Qantas Group's performance

The stable performance of Qantas and Jetstar, despite external challenges, highlights the strength of our operations. Our focus on employee recognition and strategic growth in capacity is crucial as we navigate fuel price volatility. The loyalty program continues to be a significant contributor, and we expect to see at least 10% growth in Underlying EBIT for FY2025.