Qantas CEO Alan Joyce shares 'remarkable turnaround' in profit

The airline has bounced back to pre-Covid levels thanks to strong domestic and international demand. Photo / Unsplash

Qantas CEO Alan Joyce has revealed the airline has made a "remarkable turnaround" in profit.

On Thursday, Joyce addressed the media for an update on trading, announcing a prediction of underlying profit before tax of between AU$1.2 billion and AU$1.3 billion for the first half of FY23.

It's based on forward bookings, current fuel prices and latest assumptions about the second quarter of the financial year.

It comes after $7 billion in accumulated losses since 2020 and a year of troubling times from staff shortages, increased flight cancellations and baggage mishandling.

"The main drivers have been strong travel demand both domestically and internationally," Joyce said.

He said domestic travel demand remains strong across all categories.

"Revenue intakes for business purposes are over 100 per cent of pre-Covid levels and leisure intakes have further strengthened to over 130 per cent," Joyce said.

Qantas Loyalty expects to post record earnings for the first half and is on track to reach its FY23 earnings before interest and tax (EBIT) target of AU$425-450 million.

However, the broader operating environment continues to be impacted with high fuel prices and high inflation, as well as higher interest rates having an influence on consumer confidence.

Joyce said the Qantas Group's fuel bill is expected to be over AU$1 billion this year.