Qantas posts $1.86 billion loss for FY22 but clearer skies are ahead, CEO Alan Joyce says

Qantas CEO Alan Joyce says the airline is moving back to profitability, despite posting an underlying loss of nearly $1.9 billion for the 2022 financial year and weathering damage to its global reputation.

The carrier revealed its full-year results on Thursday morning, declaring an underlying loss before tax of $1.86 billion, and a statutory loss before tax of $1.19 billion.

All told, the airline has accrued losses of $7 billion since the COVID-19 pandemic first forced carriers to ground their international fleets, Joyce said.

Qantas has also missed out on some $25 billion in revenue it expected to earn through the pandemic period.

Through the 2022 financial year, Qantas says losses were driven by a lack of flight capacity.

The number of available seat kilometres — representing the volume of tickets available to passengers — sat at just 33% of pre-COVID levels through FY22, Qantas said.

Lockdown restrictions through the first half of the financial year constrained flight availability, and heightened levels of sick leave further disrupted the airline’s “restart” process.

Labour shortages have “been more acute in aviation because of how many people left the industry during two very uncertain years”, Joyce said, without directly referencing the 2000 ground crew roles Qantas outsourced through the pandemic.

Disruptions have been reflected in widespread criticism of the airline from frequent flyers, who have complained of lost luggage, flight delays, and sluggish customer service wait times in recent weeks.

And Qantas engineers today launched a one-minute strike action against the company, reflecting deep-rooted concerns over its approach to pay negotiations.

However — despite the bruising topline numbers, capacity constraints, and its fallen cachet among loyal customers — the airline states the turnaround is underway.

“People are not just flying again — they’ve brought a level of enthusiasm for travel that was beyond our best projections,” Joyce told investors.

“Revenue intakes for leisure travel are around 125 percent of our pre-COVID levels.”

“For business travel, it’s 90% — and that’s despite the fact many people are still working from home during the current COVID-19 and flu spike.”

Capacity will improve through the new financial year, Joyce said, reaching 95% of pre-COVID levels in the first half, and 106% in the second.

While Fy22 revenue of $9.1 billion is half that recorded in 2019, it is more than 53% higher than the $5.9 billion tallied in FY21.

With net debt creeping below the airline’s target range, Qantas also revealed plans for a share buyback scheme valued at $400 million.

Along with improvements to airline lounges in Adelaide, Rockhampton, Port Hedland, and Auckland, Joyce again spruiked the bonuses offered to Frequent Flyers put off by the airline’s recent struggles.

“We hope these changes make a difference when you next fly with us,” Joyce said in a letter to loyalty members.

The financial report and Joyce’s statement have been warmly received by investors, with the company’s share price rising more than 6% through the day to $4.83.

But claims of clearer skies ahead are unlikely to deter critics.

Labor Senator Tony Sheldon — a former secretary of the Transport Workers’ Union of Australia, which went on to represent laid-off ground workers in its Federal Court case against Qantas — publicly slammed the airline’s buyback scheme.

Alan Joyce just bragged he's had "more calls to resign than any other Aus CEO", while announcing a $400m share buyback that will boost his own huge Qantas stock portfolio.

Only at Qantas can you illegally sack 2,000 staff, lose $1.9b in a quarter, while filling your own pockets.

— Senator Tony Sheldon (@TonySheldonNSW) August 25, 2022