The company said on Thursday it would invest more than $400 million in customer loyalty offerings,including new lounges,and by launching new routes such as direct flights from Sydney to New York via Auckland. It will also replace its 28 Airbus A330s,used mainly on international flights,in the next 12 to 18 months.

Wilson Asset Management’s portfolio manager,John Ayoub,said Qantas’ recovery was well on track. “Many didn’t expect the balance sheet to repair so quickly,it’s a positive indication of where the business is heading.” Wilson Asset Management owns a 0.4 per cent stake in Qantas.

Ayoub said Qantas needed to reinvest in the business,particularly in its brand and reputation given the airline had flagged it would continue to rely on high ticket prices to offset the rising cost of fuel.

“Qantas’ hedging program is about to roll off and they’ve said they’ll rely on high pricing,which is bad news for the consumer. We have to consider what it will be like going forward with high demand and record costs,” Ayoub said.

Joyce said the result showed that the company was showing signs of a rapid recovery from the effects of COVID-19 lockdowns.

“We will fix it and it will be fixed rapidly and we know the brand will recover.”

Qantas shares rose by 7.05 per cent today to $4.86.

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