News: QAN Qantas Sees Strong Travel Demand Across Portfolio

Feb 22 (Reuters) - Qantas Airways Ltd (QAN) :

• SEEING STRONG TRAVEL DEMAND ACROSS PORTFOLIO
• FY24 FUEL COST EXPECTED TO BE A$5.4 BILLION AT CURRENT FUEL PRICES, INCLUSIVE OF HEDGING.
• FY24 NET CAPITAL EXPENDITURE IS EXPECTED TO BE $A3.0-3.2 BILLION
• CAPITAL EXPENDITURE RISING IN FY25 TO BETWEEN A$3.7-3.9 BILLION
• NET DEBT EXPECTED TO BE AT OR BELOW MIDDLE OF TARGET RANGE BY END OF FY24.
• A FURTHER 14 AIRCRAFT ARE EXPECTED TO ARRIVE DURING 2H24
• FY24 DEPRECIATION AND AMORTISATION EXPECTED TO BE $A1.8 BILLION.
• TARGETING TRANSFORMATION INITIATIVES OF APPROXIMATELY A$400 MILLION IN FY24 TO OFFSET IMPACT OF CPI.
• MANUFACTURING DELAYS HAVE IMPACTED DELIVERY DATES FOR FIRST A321XLR FOR QANTAS DOMESTIC BY THREE MONTHS TO EARLY-2025
• UNIT REVENUE IS EXPECTED TO REMAIN STABLE FOR DOMESTIC AND CONTINUE TO NORMALISE FOR INTERNATIONAL IN FY24
• QANTAS LOYALTY TARGETS A$800 MILLION-A$1 BILLION UNDERLYING EBIT BY FY30
• MANUFACTURING DELAYS IMPACTED DELIVERY DATES FOR A350 FOR QANTAS INTERNATIONAL (AND PROJECT SUNRISE) BY SIX MONTHS TO MID-2026.
• NET DEBT ROSE TO A$4.0 BILLION AT END OF DECEMBER 2023
• TOOK DELIVERY OF EIGHT NEW AND MID-LIFE AIRCRAFT DURING 1H24 AS ITS FLEET RENEWAL PROGRAM RAMPS UP
• FOUR ADDITIONAL MID-LIFE A319S HAVE BEEN PURCHASED FOR NETWORK AVIATION
• 8 ADDITIONAL A321XLRS ON ORDER FOR QANTAS DOMESTIC
• TRAVEL DEMAND REMAINS STRONG ACROSS ALL SECTORS, WITH LEISURE CONTINUING TO LEAD AND BUSINESS TRAVEL NOW APPROACHING PRE-COVID LEVELS