Qantas announces $271 million share buyback plan after 16% decline in annual profit.

From Investing.com: 2024-08-28 22:55:32

Qantas Airways announced a new share buyback plan of up to A$400 million as it reported a 16% decline in annual profit due to fuel costs and fare normalization. Rising fuel prices and capacity adjustments led to lower fares, impacting earnings. The carrier expects fuel costs to remain steady at A$2.7 billion in the first half of fiscal 2025.

In efforts to manage costs, Qantas predicted a 7%-10% decline in Group International unit revenue for the fiscal year, with an expected improvement in the fourth quarter of fiscal 2025. The airline’s underlying profit before tax was A$2.08 billion, meeting market consensus but still declining by 16%. Profit after tax fell by 28.1% to A$1.25 billion on a statutory basis.

Despite lower earnings, Qantas is focusing on customer promotions and facility enhancements to attract passengers following negative publicity on travel bookings and employee treatment. The carrier did not declare a final dividend for the fifth consecutive year but announced a share buyback program to distribute excess capital, aligning with its financial framework criteria.



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