Qantas Airways Limited · ASX:QAN
Qantas Airways — H1 2025 Earnings Presentation
29 slides from Qantas Airways's earnings presentation, Feb 27, 2025
Slide 1: 1H25 Results Supplementary Presentation
1H25 Results Supplementary Presentation Qantas Airways Limited 27 February 2025 ASX: QAN US OTC: QABSY
Slide 2: Disclaimer
Disclaimer Summary information For definitions of non-IFRS financial information refer to geopolitical uncertainties, including global market the Glossary (see slide 29) and the Consolidated Interim conditions and demand; and legal, technological and This Presentation contains summary information ab
Slide 3: Group Performance
Group Performance Weoantas croup
Slide 4: 1H25 Key Group Financial Metrics
1H25 Key Group Financial Metrics 1H25 1H24 Profit metrics Revenue $M 12,129 11,127 Underlying Profit Before Tax $M 1,385 1,245 Underlying Earnings per Share c 62.8 51.7 Statutory Profit Before Tax $M 1,320 1,245 Statutory Profit After Tax $M 923 869 Statutory Earnings per Share1 c 59.9 51.8 Balance
Slide 5: 1H25 Key Group Operating Metrics
1H25 Key Group Operating Metrics 1H25 1H24 Change Unit Revenue (RASK)1 c/ASK 11.31 11.65 (2.9)% Total Unit Cost1 c/ASK (9.50) (9.85) 3.6% Unit Cost (ex-Fuel)1 c/ASK (6.18) (6.00) (3.1)% Available Seat Kilometres (ASK) M 76,438 69,324 10.3% Revenue Passenger Kilometres (RPK) M 65,337 57,989 12.7% Pas
Slide 6: Items not included in Underlying PBT
Items not included in Underlying PBT $M 1H25 Comments $65m increase in legal provision. In December 2024, the Group reached an agreement with the Transport Workers Union (TWU) on the payment of compensation to Legal provisions and related costs (65) the former ground handlers to a total value of $12
Slide 7: Reconciliation to Underlying Profit Before Tax
Reconciliation to Underlying Profit Before Tax $M 1H25 1H24 Items not Items not included in included in Statutory Underlying Underlying Statutory Underlying Underlying Net passenger revenue 10,474 – 10,474 9,614 – 9,614 Net freight revenue 671 – 671 605 – 605 Other revenue and income 984 – 984 908 –
Slide 8: Statutory Income Statement Detail
Statutory Income Statement Detail $M 1H25 Net passenger revenue up 9% 10,474 • Group capacity increased 10% from new fleet capacity up-gauge with Group RASK down 3% Net passenger revenue — Group Domestic1 Unit Revenue up 5% due to continued return of higher yielding business- Net freight revenue 671
Slide 9: Statutory Other Revenue and Expenses Detail – Compared to 1H24
Statutory Other Revenue and Expenses Detail – Compared to 1H24 $M 1H25 1H24 Change $M 1H25 1H24 Change Other Revenue and Income 984 908 76 Other Expenditure 1,756 1,457 299 Frequent Flyer marketing revenue and other Qantas Loyalty Technology and digital up 20% businesses up 13% • Increased technolog
Slide 10: Group Unit Revenue and Unit Cost (c/ASK)
Group Unit Revenue and Unit Cost (c/ASK) RASK 1H25 CASK 1H25 Net passenger revenue $M 10,474 Underlying (Profit) Before Tax $M (1,385) Excluding Other passenger $M (1,829) Less: Ticketed passenger revenue $M 8,645 revenue A ATicketed Passenger Revenue $M 8,645 C CNet expenditure $M 7,260 Less: Fuel
Slide 11: Revenue received in advance (RRIA) and travel credits
Revenue received in advance (RRIA) and travel credits Revenue received in advance ($B) 8.5 8.5 8.1 7.8 • Airline RRIA was seasonally lower in 1H25 (December 2024) 0.6 0.6 0.5 but experienced strong growth relative to 1H24 (December 0.5 2023) • Unredeemed Frequent Flyer revenue continued to grow in 4
Slide 12: Financial Framework and Fleet
Financial Framework and Fleet 12
Slide 13: Return on Invested Capital (ROIC) calculation
Return on Invested Capital (ROIC) calculation 12 mths to 12 mths to • ROIC EBIT is derived by adjusting Underlying EBIT $M to exclude AASB 16 lease depreciation and includes Dec 24 Dec 23 notional depreciation for leased aircraft as if they were owned Underlying EBIT 2,439 2,483 • Non-aircraft lease
Slide 14: Balance Sheet summary under Financial Framework
Balance Sheet summary under Financial Framework As at 31 As at 31 • Invested Capital is defined as Net Assets adjusted for $M Dec 2024 Dec 2023 the following: Net Assets 743 117 – Exclusion of Cash and cash equivalents and Less: Cash and cash equivalents (2,340) (1,545) Interest-bearing liabilities
Slide 15: Net Debt Target Range
Net Debt Target Range • Net Debt Target Range = 2.0x — 2.5x EBITDA where ROIC = 10% • At forecast average Invested Capital of $5.4b1, optimal Net Debt range is $4.7b to $5.8b Forecast Jun 25 Drivers of Net Debt Target Range $B Forecast Invested Capital Avg Forecast Invested Capital for trailing 12 m
Slide 16: Net Debt and Liquidity Position
Net Debt and Liquidity Position As at 31 As at 30 Net Debt unchanged for the 6 months to December 2024 $M Change Dec 2024 Jun 2024 – Gross debt increased by $0.6b from $0.2b drawdown of Net on Balance Sheet debt1 3,290 3,311 21 secured and $0.5b of unsecured debt, partially offset by $0.1b of schedu
Slide 17: Net Debt movement under the Financial Framework
Net Debt movement under the Financial Framework $M 1H25 1H24 The Financial Framework considers aircraft leases as part of Net Debt Opening Net Debt (4,106) (2,885) – Aircraft leases are initially recognised in Net Debt at fair Net cash from operating activities 2,073 1,341 value Less: Net lease prin
Slide 18: Financial Framework versus Statutory Net Debt
Financial Framework versus Statutory Net Debt As at 31 As at 30 • Under the Financial Framework, aircraft leases are $M Dec 2024 Jun 2024 treated as capital acquisitions and recognised at fair value (through Net Capex) and a notional Interest-bearing liabilities 5,624 5,035 borrowing recognised as p
Slide 19: Financial risk management framework
Financial risk management framework Hedging program Principles of Financial Risk Management • Principles of financial risk management Reducing cash flow volatility in the short term through – Manage net cash flow impacts disciplined hedging program to allow for implementation of operational levers –
Slide 20: Robust financial risk management
Robust financial risk management Operational Fuel and FX Capital Expenditure FX – Hedging of USD Fleet Payments • 1H25 fuel cost at $2.5b • Hedging remains consistent with long term approach to risk – Inclusive of ~$30m of SAF and carbon credits management • 2H25 is 72%1 hedged through a combination
Slide 21: Illustrative: Fleet benefits cycle
Illustrative: Fleet benefits cycle Benefits by fleet type over delivery timeline Benefits expected to be realised over period of fleet investment Returns Introductory Introduction Building to scale Maturity • Entry into service (EIS) costs of new aircraft types impact initial returns of fleet invest
Slide 22: Supplementary Segment Information
Supplementary Segment Information 22
Slide 23: Qantas Domestic and International Overview
Qantas Domestic and International Overview Qantas Domestic Qantas International • Consists of Qantas Domestic and QantasLink • Consists of Qantas International and Qantas Freight • Full service offering targeting business purpose and premium leisure • Globally recognised long haul carrier targeting
Slide 24: Jetstar Group Overview
Jetstar Group Overview Jetstar Domestic Jetstar International and New Zealand Jetstar in Asia • Australian industry-leading LCC1 Jetstar International3 Jetstar Japan • 100% owned by Qantas Group • Australian industry-leading LCC1 capitalising on • Jetstar Japan is the #1 domestic LCC1 at Tokyo’s • S
Slide 25: Diversification and growth at Qantas Loyalty
Diversification and growth at Qantas Loyalty Members Redemption Earn • Deliver everyday engagement between • Increase points earn through the flywheel • Large ecosystem for members to engage in members and the Qantas brand effect from growth in overall redemptions everyday earn – Market leading airl
Slide 26: Continuous delivery of transformation benefits
Continuous delivery of transformation benefits 1H25 $m 1H25 transformation highlights 211 186 Increased efficiency (fuel Revenue Innovation – e.g. Commencement of Group and scale) on existing Flight Switch, Freight Boarding in mainline routes driven by new and Products, Price Optimisation domestic o
Slide 27: 1H25 Group and Group Domestic Traffic Statistics vs 1H24
1H25 Group and Group Domestic Traffic Statistics vs 1H24 1Q25 1Q24 Change (%) 2Q25 2Q24 Change (%) 1H25 1H24 Change (%) Total Qantas Group Operations Passengers Carried ‘000 13,906 12,861 8 14,393 13,151 9 28,299 26,012 9 Revenue Passenger Kilometers M 32,219 28,840 12 33,118 29,149 14 65,337 57,989
Slide 28: 1H25 Group International Traffic Statistics vs 1H24
1H25 Group International Traffic Statistics vs 1H24 1Q25 1Q24 Change (%) 2Q25 2Q24 Change (%) 1H25 1H24 Change (%) Group International Available Seat Kilometres M 23,849 20,510 16 24,728 21,324 16 48,577 41,834 16 Group International Unit Revenue % (10) (3) (7) Change Qantas International Passengers
Slide 29: Glossary
Glossary Available Seat Kilometres (ASK) – Total number of seats Invested Capital (IC) – Net assets (excluding cash, debt, Revenue Passenger Kilometres (RPK) – Total number of available for passengers, multiplied by the number of other financial assets and liabilities and tax balances) passengers ca