That’s $80 million extra expenditure derived from what was a near $2.5 billion in profit in 2023.
Also,the Monday message contained the less palatable threat that airfares may go up if the oil price remains at current levels.
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Fuel costs have gone up by $200 million since May last year,some of which is the result of more flying. Qantas says it has absorbed these costs but suggests if they continue to rise the customer is going to start paying. It clearly wants to recoup these costs even but says it is mindful of the already high airfares and appreciates the elevated cost of living that its customers are already living with.
Of course Qantas doesn’t use the words “higher airfares”. Instead,it says “it will look to adjust its settings” in response to higher fuel costs.
There are no prizes for guessing how customers will feel about paying even more in airfares – given they are already 50 per cent higher than pre-COVID.
And then Qantas announced under the heading “capacity and network update” that international capacity will grow 12 percentage points during the last three months of this calendar year.
But no mention of this additional capacity showing up on the much-needed flights from Australia to Europe.
The 50 additional flights includes Qantas resuming its Sydney-Shanghai services and starting two new routes,Brisbane-Wellington and Brisbane-Honiara,and a new Jetstar service from Brisbane to Tokyo.
That said,Hudson is navigating a particularly difficult start to her time at the top.
In normal circumstances,a new chief executive begins their reign either of two ways.
If they are replacing a chief executive who has presided over poor profits,the replacement will announce an entirely new strategy.
If the former chief has presided over a booming business,the new chief will declare the strategy will continue.
Only a month ago when Qantas announced its $2.47 billion profit for 2023,Hudson allied herself strongly with Joyce,calling the airline “blessed” to have had him as its leader.
So much has changed in four weeks.
“I wasn’t the chief executive then. I am the chief executive now,” she told the media last Friday as she apologised for the airline’s treatment of customers.
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