Qantas profits dip to lowest in four years as jet fuel costs climb after Iran conflict
Summary
Qantas reported its lowest pre-tax profit in four years, at $2.06 billion, mainly because rising jet fuel costs from the US-Iran conflict increased expenses by $610 million. The airline plans to retire its Airbus A380 planes and introduce new aircraft while making changes to its ticket policies, such as charging for carry-on luggage on Jetstar flights.Key Facts
- Qantas’ pre-tax profit dropped to $2.06 billion, the lowest in four years.
- Increased fuel costs from the US-Iran conflict added $610 million to expenses.
- The airline will phase out Airbus A380 aircraft and add new planes to its fleet.
- International flight earnings fell due to higher fuel expenses but revenue grew 8% from more flight capacity.
- Jetstar expanded its international flights by 11%, with a 14% revenue increase.
- Domestic combined earnings from Qantas and Jetstar reached $1.44 billion.
- Jetstar will start charging for carry-on luggage next year, with basic tickets including only one small bag.
- Qantas’ loyalty program earnings grew 12% to $625 million, with a 6% increase in active members.
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