News: QAN Qantas Expects 1H23 Underlying Profit Before Tax Of Between A$1.2 Bln And A$1.3 Bln

Oct 13 (Reuters) - Qantas Airways Ltd (QAN) :

• QANTAS GROUP MARKET UPDATE
• EXPECTS 1H23 UNDERLYING PROFIT BEFORE TAX OF BETWEEN A$1.2 BILLION AND A$1.3 BILLION
• ACCELERATED FINANCIAL RECOVERY ENABLES IMPROVEMENT TO WAGES POLICY AT TOTAL COST OF APPROXIMATELY A$40 MILLION P.A
• FURTHER A$200 MILLION INVESTMENT IN CONTINUED OPERATIONAL RESILIENCE AGAINST SICK LEAVE SPIKES, SUPPLY CHAIN DELAYS
• GROUP INTERNATIONAL CAPACITY NOW EXPECTED TO INCREASE FROM 61% OF PRE-COVID LEVELS IN FIRST HALF OF FY23 TO 77% IN SECOND HALF
• NET DEBT IS EXPECTED TO FALL TO BETWEEN A$3.2 BILLION AND A$3.4 BILLION AT 31 DECEMBER 2022
• GROUP DOMESTIC CAPACITY WILL BE 94 PER CENT OF PRE-COVID LEVELS FOR 1H23, GROWING TO AROUND 100 PER CENT FOR SECOND HALF
• QANTAS LOYALTY EXPECTS TO POST RECORD EARNINGS FOR FIRST HALF AND IS ON TRACK TO REACH ITS FY23 EBIT TARGET OF A$425-A$450 MILLION
• QANTAS DOMESTIC'S ON TIME PERFORMANCE INCREASED FROM 67 PER CENT IN AUGUST TO 69 PER CENT IN SEPTEMBER
• CANCELLATIONS FELL FROM 4 PER CENT IN AUGUST TO 2.4 PER CENT IN SEPTEMBER
• IN OCTOBER SO FAR, ONLY 1.7 PER CENT OF FLIGHTS HAVE BEEN CANCELLED
• ANNOUNCED A CHANGE TO WAGES POLICY COVERING AROUND 20,000 EMPLOYEES
• JETSTAR'S PERFORMANCE IN SEPTEMBER SUFFERED SIGNIFICANTLY FROM SIX OF ITS 11 WIDE-BODY AIRCRAFT BEING OUT OF SERVICE
• ANNUAL WAGE INCREASES WILL BE ADJUSTED UPWARDS FROM 2 PER CENT TO 3 PER CENT
• BUYBACK COMMENCED IN MID-SEPTEMBER IS NOW 26 PER CENT COMPLETE
• ADDITIONAL PAY INCREASE FOR AROUND 20,000 EMPLOYEES ON TOP OF A$10,000 IN BONUSES AND IMPROVEMENT TO STAFF TRAVEL BENEFITS
• FUEL PRICES ARE NOW AROUND 75 PER CENT HIGHER THAN PRE-COVID, COMPARED WITH AROUND 60 PER CENT IN AUGUST 2022
• REVENUE INTAKES FOR BUSINESS PURPOSES ARE OVER 100% OF PRE-COVID LEVELS AND LEISURE INTAKES HAVE FURTHER STRENGTHENED TO OVER 130%
• YIELDS FROM INTERNATIONAL MARKETS ARE PARTICULARLY STRONG BUT ARE EXPECTED TO MODERATE AS QANTAS AND OTHER CARRIERS STEADILY INCREASE CAPACITY