Qantas Airways Limited · ASX:QAN
Qantas Airways — H1 2025 Earnings Presentation
36 slides from Qantas Airways's earnings presentation, Feb 27, 2025
Slide 1: 1H25 Results
1H25 Results Investor 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 statements, particularly in light of economic and the Glossary (see slide 34) and the Consolidated Interim geopolitical uncertainties, including global market This Presentation contains summary information abou
Slide 3: Maintaining financial strength means we can invest in our largest ever fleet renewal
Maintaining financial strength means we can invest in our largest ever fleet renewal and cabin Our People Our Customers overhaul programs, and provide new opportunities for our people and better experiences for our customers Vanessa Hudson Group CEO Our Shareholders Our Community & Partners 3
Slide 4: 1H25 overview
1H25 overview Operating results Customer and People $1,385m • Strong performance across the Group’s portfolio • 4 ppt uplift in reputation score5 from 1H24 to Underlying Profit Before Tax • Operating cash flow of $2.1b 1H25 • Statutory Profit After Tax includes $65m increase • 13 ppt uplift in Qanta
Slide 5: Group 1H25 integrated portfolio highlights
Group 1H25 integrated portfolio highlights • Dual brand strategy drives segment success Domestic and sustainable industry-leading margins with 1H25 highlights: Portfolio Segment EBIT4 ($b) leadership positions across all key market • Ongoing narrowbody renewal segments program including Jetstar A321
Slide 6: Vision: Driving sustainable shareholder value starts with our people and customers
Vision: Driving sustainable shareholder value starts with our people and customers OUR PEOPLE OUR CUSTOMERS Proud to work for us Proud to fly with us Passionate about our customers and Trust and depend on us to take care empowered to provide great service of the moments that matter Belong to a safe
Slide 7: Investing in our People and Culture
Investing in our People and Culture Listen and Act Connect and Support Inclusion & Belonging Retention December 2024 Group Attrition1 5.7% Steadily declined over the past 6 months from 6.3% in June 2024 Attraction • Announced $40m investment in • $1,000 Thank-You payment • Achieved Advanced Workplac
Slide 8: Investing in our Customers
Investing in our Customers Leading ground experience Exceptional flying experience 1H25 performance Qantas Airlines Reputation (RepTrak Score) PICTURE 64 57 2Q24 2Q25 Airline NPS (Domestic and International) • Launched Group Boarding for Qantas in major • New aircraft deliveries: Jetstar 6 x A321LRs
Slide 9: Investing in our Customers
Investing in our Customers Seamless digital experience Trusted to recover well Unrivalled reward and recognition • Launched a digital Australian Travel Declaration • Launched Request Tracker for complaints, refunds • Expanded Classic Plus to Domestic, with 20 million 1H25 Highlights trial with ABF1
Slide 10: Investment in new fleet and existing fleet
Investment in new fleet Investment in existing fleet 18 new aircraft deliveries in FY25 (with more than 100 new aircraft on order) 1 737 Refresh New seating Refreshed cabins Next generation New materials with ergonomic seating new look and feel Improved and more Refreshed cabins, Quieter, more comfo
Slide 11: Investing in our Community
Investing in our Community Growing careers, creating jobs Connecting and contributing Connecting to our regions the regions Supporting Supportingour communities Communities First Nations partnerships and building the economy >$30m invested via Resident Fares 4-year partnership launched >29k people e
Slide 12: Sustainability – Continued progress across our Climate Action Plan
Sustainability – Continued progress across our Climate Action Plan SAF & carbon markets Customer Operational improvements Progress in the Climate Fund, >$100m committed: Expanded SAF Coalition Realised reduction in carbon emissions on • Jet Zero: QLD alcohol-to-jet SAF project • Increased membership
Slide 13: Financial Performance
Financial Performance CANTAS GROUP
Slide 14: 1H25 Group financial metrics
1H25 Group financial metrics Profit metrics (vs 1H24) Balance Sheet and Cash Flow metrics Key statistics vs 1H24 $1,385m +$140m $2.1b +10.3% +12.7% Underlying profit before tax Operating cash flow ASKs RPKs $923m +$54m $1.4b +1.9 ppts +8.8% Statutory profit after tax Net Capital Expenditure Seat Fac
Slide 15: 1H25 profit bridge compared to 1H24
1H25 profit bridge compared to 1H24 $m ASKs RASK Group Domestic +1% Group Domestic +5% Group International +16% Group International (7%) Discount Rate 5 Net Finance Costs (20) 337 (277) Capacity Other (10) (138) (186) 211 (53) (22) (29) 1,385 Fuel 322 (25) 1,245 1H24 Capacity RASK CPI Transformation
Slide 16: 1H25 movement in Net Debt
1H25 movement in Net Debt $m Financing cash impacts and FX ($568m) Net Cash from Operating Activities +$2,073m (177) (235) (106) 2,485 (1,427) (509) (59) (4,106) (4,134) 30 Jun 24 EBITDA Working Capital1 Interest & Tax Financial Net Capex Spend3 Shareholder FX revaluations 31 Dec 24 Net Debt Framewo
Slide 17: Portfolio Results
Portfolio Results CANTAS GROUP
Slide 18: Integrated portfolio drives value beyond the businesses
Integrated portfolio drives value beyond the businesses Integrated value metrics Domestic margin1 premium Dual brand Network connectivity Domestic and Domestic and Airline share of wallet International International Integrated Airline yield per passenger Loyalty offering QFF program engagement Procu
Slide 19: Qantas Domestic
Qantas Domestic Strong underlying performance across network 1H25 1H24 Change • +7% RASK vs 1H24 as a result of Revenue $M 4,010 3,758 +7% – +2.0 ppt of seat factor growth, with all markets outperforming 1H24 – +1.5 ppt of yield mix from continued return of business traffic and network design Underl
Slide 20: Qantas International (including Freight)
Qantas International (including Freight) Ongoing restoration of capacity and scale across international markets as demand 1H25 1H24 Change remains strong Revenue $M 4,619 4,340 +6% • 4% RASK contraction vs 1H24, with rate of moderation performing ahead of expectations and supported by +1.9ppt improv
Slide 21: Jetstar Group
Jetstar Group Jetstar Group record result driven by strong demand, capacity growth from efficient new fleet, 1H25 1H24 Change transformation offsetting CPI, operational improvements and lower fuel costs Revenue1 $M 2,894 2,486 +16% Jetstar’s Australian domestic network delivered $269m Underlying EBI
Slide 22: Qantas Loyalty
Qantas Loyalty Strong performance across all key businesses, offset by previously disclosed impact 1H25 1H24 Change from Classic Plus investment Revenue $M 1,334 1,271 +5% New product launches increasing engagement in the program • Positive early signs with 2x growth in earn from members who have re
Slide 23: Financial Framework and Fleet
Financial Framework and Fleet
Slide 24: Financial Framework continuing to deliver for all stakeholders
Financial Framework continuing to deliver for all stakeholders 1 Maintain optimal capital structure 2 ROIC > WACC through the cycle 3 Disciplined allocation of capital Grow Invested Capital with disciplined Minimise cost of capital by targeting a Net investment, return surplus capital to Debt range
Slide 25: Strong Balance Sheet Settings
Strong Balance Sheet Settings Total liquidity of >$11.5b as at 31 December 2024 Liquidity • Financial Framework Net Debt target settings results in structurally higher sources of liquidity • Unencumbered assets include ~$6.3b of unencumbered aircraft (~63% of the Group $1.2b >$8b2 fleet4), spare eng
Slide 26: Structurally low Financial Leverage
Structurally low Financial Leverage Financial Framework delivers structurally low financial Leverage3: Targeting at or below middle of Net Debt Target Range leverage • At the middle of Net Debt Target Range1 expected to deliver Moody’s Net Debt/EBITDA2 outcome of ~1.5x – 2.0x through the cycle • Mai
Slide 27: Disciplined allocation of Capital
Disciplined allocation of Capital Ongoing review of Invested Capital allocation across the portfolio of businesses Continuous Review / Recycle Capital • Capital allocation framework consistently applied to maximise integrated value of the Group’s portfolio through the cycle Operating Cash Flow All d
Slide 28: New aircraft deliveries and fleet flexibility
New aircraft deliveries and fleet flexibility New aircraft deliveries1 Current fleet delivery status Key: Changes from FY24 presentation in superscript • OEM6 production process continues to be challenged by supply chain disruption (incl. seat suppliers), with the Group incurring minor aircraft deli
Slide 29: New fleet technology to drive benefits over time
New fleet technology to drive benefits over time Legend: + Some EIS1 costs Material benefit ++ Relatively higher EIS1 costs Relatively greater benefit Target financial benefits at scale Customer A321LR vs A220 vs A321XLR vs A321/A320ceo 717-200 737-800 Modernised cabin design improving comfort and c
Slide 30: Narrowbody
Benefits expected to be realised over period of fleet investment Fleet Strategic benefits FY25 FY26 FY27 FY28 FY29 Growth and scale A321LR/XLR & A320neo • Fuel and scale efficiencies and growth through new international routes and 787 Maturity redeployment Narrowbody A319 Q400 Domestic range and fle
Slide 31: Outlook
Outlook CANTAS GROUP
Slide 32: Outlook
Outlook Business Outlook Financial Outlook • Expect strong travel demand across the portfolio into 2H25 • FY25 fuel cost at ~$5.22b1, inclusive of hedging and gross carbon cost of ~$70m2 • Group RASK expected to increase in 2H25 vs 2H24: • FY25 Depreciation and amortisation is expected to be — Group
Slide 33: Outlook – Guidance Tables
Outlook Guidance Tables Capacity Guidance1 3Q25 4Q25 2H25 FY25 1Q26 Commentary (vs prior corresponding period) Group Domestic +1% +3% +2% +2% +4% Domestic • Group domestic growing in line with demand with Jetstar growth Qantas Domestic +0% +2% +1% -1% +2% supported by addition of new fleet. Jetstar
Slide 34: Glossary
Glossary Available Seat Kilometres (ASK) – Total number of seats FX – Foreign exchange Return on Invested Capital (ROIC) – ROIC EBIT for the 12 available for passengers, multiplied by the number of months ended for the reporting period, divided by the 12 Invested Capital (IC) – Net assets (excluding
Slide 35: — = = =< QANTAS RDUP.
— = = 7 =< QANTAS RDUP.
Slide 36: Thank you
MSGANTAS GROUP |