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Investing.com-- Qantas Airways Ltd (ASX:QAN) shares rose sharply on Thursday after the airline reported strong half-year earnings and announced its first shareholder dividend in nearly six years.
The airline posted an 11% increase in underlying profit before tax to A$1.39 billion ($923 million) for the half-year ended December 31, 2024, driven by strong travel demand and fleet investments.
The company’s statutory after-tax profit rose 6% to A$923 million, while underlying earnings per share climbed 21% to 63 cents.
Qantas announced its first shareholder dividend since 2019, comprising an interim dividend of 16.5 Australian cents apiece, and a special dividend of 9.9 cents per share.
Sydney-listed shares jumped 7.4% to A$9.60, their highest level since February 6.
“The Group’s performance highlights the benefits of having both a premium and a low fares airline and a strong loyalty program,” Qantas Group CEO Vanessa Hudson (NYSE:HUD) said.
The results were supported by high demand for domestic and international travel, with Qantas and Jetstar carrying 28 million passengers, nearly 10% more than the previous year. Jetstar recorded its highest-ever number of customers, with around one in three fares costing less than A$100 amid rising cost-of-living pressures.
Looking ahead, Qantas expects continued strong travel demand in the second half but acknowledges cost pressures, including higher airport and supply chain expenses.
The airline forecasts modest domestic fare increases and stable international pricing for the second half.