Qantas profits hit by tough international competition
Tough competition on the international market has taken its toll on Qantas’ first half profits.
The airline reported a 7.5% fall in underlying pre-tax profit to A$852 million (£527 million) for the first six months until December but ahead of the A$800-A$850 million guidance it gave in October.
Revenue dropped 3.3% to A$8.18 billion.
Qantas CEO Alan Joyce said: "The international market is tough because of capacity growth and lower fares, and Qantas International is not immune from those pressures.
"But the work we’ve done on removing costs and making the business more efficient means Qantas International is outperforming its peers in the region.
"Our focus is to stay disciplined on capacity, keep downward pressure on costs, and introduce game-changing improvements like the Dreamliner and high-speed Wi-Fi.
"This result is a credit to the hard work and dedication of our people, who have helped deliver high levels of customer satisfaction right across Qantas, Jetstar and Loyalty."
Qantas has also revealed its next generation Premium Economy seat, which will debut on the airline’s fleet of Boeing 787-9 Dreamliners from October.
Key features include a separate cabin of 28 seats, configured in a two-three-two, and a seat that is almost 10% wider than Qantas’ existing Premium Economy and with a larger recline.
Seats also have ergonomically designed headrests and high-definition Panasonic inflight entertainment seatback screens that are 25% larger.
"The Qantas Dreamliner will by flying some of the longest routes in the world, including non-stop from Perth to London, so we’ve focused on making each cabin the most comfortable in its class," said Joyce.
"Our Business Suite has been dubbed ‘mini First Class’ by some of our Frequent Flyers and our Economy seat for the Dreamliner has features that some reserve for Premium Economy.
"This new Premium Economy seat has serious wow factor. You have to experience how well it supports you when you recline to realise it’s completely different from anything else in its class."
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt