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Updates with more detail on profit view, shareholder returns
Nov 23 (Reuters) – Australia’s Qantas Airways Ltd QAN.AX on Wednesday again raised its first-half pre-tax profit expectation on strong travel demand, with limits on international capacity helping boost domestic tourism.
In its second profit upgrade in six weeks, the carrier expects first-half underlying profit before tax between A$1.35 billion ($897 million) and A$1.45 billion, above prior expectation of between A$1.2 billion and A$1.3 billion.
A year earlier, the company recorded an underlying loss before tax of A$1.28 billion. (https://bit.ly/3U8hbPa)
“Consumers continue to put a high priority on travel ahead of other spending categories and there are signs that limits on international capacity are driving more domestic leisure demand, benefiting Australian tourism,” Qantas said.
Qantas also raised expectations for a decline in net debt to between A$2.3 billion and A$2.5 billion by the end of 2022, an A$900 million improvement from its previous estimate.
“Low levels of net debt put the board in a position to consider future shareholder returns in February 2023,” the airline said, adding 76% of the A$400 million share buyback program announced in August has been completed.
($1 = 1.5049 Australian dollars)
(Reporting by Sameer Manekar in Bengaluru; Editing by Krishna Chandra Eluri and Sriraj Kalluvila)
((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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