Monitoring Desk
ISLAMABAD: Australian airline Qantas has reported half-year profits of more than A$1 billion, marking a dramatic turnaround in the airline’s fortunes since last year.
It follows the company’s loss of more than A$7 billion during the pandemic, when Australia imposed strict travel restrictions.
Last year, it faced a slew of criticism for cancelled flights, lost luggage, and delays. The airline attributed its rebound to high flight demand, higher airfares, and cost-cutting measures.
According to CEO Alan Joyce, as pandemic travel restrictions were eased, revenue nearly tripled in the six months to the end of December. The A$1 billion profit compares to a loss of A$456 million in the same period the previous year. Joyce stated that this is a significant improvement from our massive losses just a year ago.
Airlines impacted by pandemic
The pandemic severely impacted many airlines as countries closed their borders, with Australia imposing some of the most stringent travel restrictions in the world. For more than 18 months, most non-Australians were denied entry, leaving thousands of Australians stranded abroad due to strict arrival quotas. Qantas announced in August 2020 that it would outsource 2,000 ground staff positions and lay off thousands of employees to cut costs.
However, this resulted in a costly court case and staffing shortages.
As restrictions were eased last year, the shortages caused chaos at Australian airports, with passengers experiencing long delays and lines for check-in. At the same time, senior executives were called in to help fill gaps. As the outpouring of rage grew, it was reported in
August that Joyce’s A$19 million waterfront home had been pelted with eggs and toilet paper.
In January, the airline rejected suggestions of widespread problems with its aircraft following a series of mid-flight technical failures.
Despite these incidents, Qantas was named the world’s safest airline by AirlineRatings.com. Joyce said on Thursday that the airline was “reinvesting” in its customers and that fares would begin to fall as supply chain and resourcing issues eased. However, Qantas cautioned that fares could increase.
