Qantas roughly halved its loss last financial year and is expected to get back to pre-COVID levels of profitability this year, despite the flights cancellations, delays and baggage issues that have plagued the airline.
Qantas posted a full-year net loss of $860 million, down from a $1.69 billion loss the year before, as revenue jumped 54 per cent from 2021, when state and international border closures affected air travel more severely.
The company's preferred underlying number showed a slightly increased loss on last year of $1.86 billion before tax, and the airline said it had lost a cumulative $7 billion in before-tax profit due to COVID-19, with revenues down an estimated $25 billion.
The airline's chief executive, Alan Joyce, argued it had coped well overall with the disruptions.
"We had to ramp down almost all flying once Delta hit and stay that way for several months before ramping back up through multiple Omicron waves as we all learned to live with COVID in the community," Mr Joyce said in a statement.
"We always knew travel demand would recover strongly but the speed and scale of that recovery has been exceptional."
Qantas 'tracking ahead of pre-COVID profitability'
Qantas said it was on track to achieve around $1 billion in savings in the current 2023 financial year.
The airline cut thousands of jobs during the pandemic, and it also outsourced ground handling work — although this move was found to be illegal by the Federal Court with the airline now appealing to the High Court.
Forager Funds Management holds Qantas shares in its portfolio, and its chief investment officer Steve Johnson said the result was "largely as expected".
"Strong pricing and lack of capacity is offsetting the short term impacts of higher fuel costs and operational disruptions from staff shortages and illness.
"The guidance provided for 2023 was cryptic, but seems to be suggesting they are tracking modestly ahead of pre-Covid profitability. We are expecting at least that for the year."
Mr Joyce said the airline's staff had "done an amazing job" to cope with surging demand at the same time as sick leave and labour shortages increased sharply.
"Safety remains number one, but our service isn't at the level expected of the national carrier," he said.
"There is a lot of work happening to bring us back to our best, including hiring more people, rolling out new technology and reducing domestic flying so we have more sick leave cover.
"We saw a big improvement in baggage handling and cancellations in August, which we expect will return to pre-COVID standards next month. On time performance also improved significantly and should be close to our usual high standard in September."
Qantas will not pay a dividend but did launch a share buyback worth up to $400 million as a way to return some cash to shareholders.
The airline's shares were up 5.7 per cent to $4.80 in late afternoon trade.
Joyce resists resignation calls
Alan Joyce has pushed back against union calls for him to resign following consumer anger over months of flight cancellations, delays and lost luggage, and staff discontent over outsourcing of jobs.
Mr Joyce was speaking to reporters in Sydney after the company posted its third consecutive annual loss, but announced the post-pandemic rebound in travel had allowed the airline to cut debt and buy back shares.
Mr Joyce dismissed the Transport Workers Union (TWU) calls for him to resign over recent chaos, but apologised to customers.
"I think the unions were lining up for my blood in 2011 and 2013," Mr Joyce said.
"I think I've have more resignation requests than any other CEO and probably any other public figure out there.
"The unions typically do this at different times (call for the CEO to resign), so that's not unusual. It's part of the job.
"I think (former CEO) Geoff Dixon had that before I had the job, and I'm sure the next CEO will have to save the same team to be able to manage or work with."
He noted Qantas was an "iconic national carrier" that was loved by Australians and the recent frustration that the airline has caused because of delays and cancellations and lost baggage.
"It's a company that people are very passionate about. And I do recognise, therefore, that you do get the highs and the lows associated.
"We've been out there apologising for the mistakes that we've made for not delivering for what the customers expect from us."
'Smashed working conditions'
TWU national secretary Michael Kaine called for the resignation of Alan Joyce, saying he was responsible for the company's "outsourcing, poor performance and reputational damage to the brand".
Mr Kaine also called for a new regulatory body to ensure privatised airlines and airports prioritised secure jobs and quality service over tactics to drive up the share price with gimmicks and unethical behaviour.
"No-one wants to see airlines making losses, but they do want to see them being responsible," Mr Kaine said.
"That's not how Joyce-led Qantas — which has methodically smashed working conditions and service standards — has been run for years.
He said after months of cancellations, delays and lost luggage, customers could not have any faith that the company's performance would rebound by October.
"Instead, we're facing a catastrophic Christmas of delays, diversions and cancellations," he said.
"If Qantas management really valued its employees, it would actually invest in them by insourcing essential jobs and lifting wages and conditions without strings attached. Instead, the conveyer belt keeps turning with tactics."
The TWU is calling for the federal government to establish a Safe and Secure Skies Commission to protect aviation jobs.
