Qantas shares have jumped after the carrier upgraded its profit forecast for the second time in six weeks.Credit:James Brickwood
“Consumers continue to put a high priority on travel ahead of other spending categories and there are signs that limits on international capacity are driving more domestic leisure demand,benefiting Australian tourism,” the statement said.
The carrier’s share price surged by more than 5 per cent to $6.19 after market opened on Wednesday morning.
Qantasshocked the market in October when it predicted a return to profit by the end of June 2023. Its shares surged to by 12 per cent following that announcement.
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The carrier expects fuel costs to reach $5 billion by the end of the financial year in June 2023,a record for the country’s biggest carrier despite international capacity remaining about 30 per cent down on pre-pandemic levels.
About $800 million in customer travel credits issued over the pandemic have still not been redeemed,but total credit usage has reached about $70 million per month. Qantas has committed to announcing new initiatives so all of the remaining credits can be used by the end of this financial year.
Just under 80 per cent of the group’s $400 million share buyback announced in August has been completed at an average price of $5.66 per share. The group flagged the board is poised to consider future shareholder returns in February based on its low level of debt.