DESPITE reporting a loss before tax of $1.9 billion, Qantas said its air freight subsidiary has posted a record annual performance.
Qantas released its results for the 2022 financial year on 25 August. The figures were reflective of the “extremely challenging time” the group said it experienced in recent years.
“The numbers we’re reporting today put the full impact of the Delta and Omicron lockdowns on the group in stark financial terms,” Qantas CEO Alan Joyce said.
The 2022 results suggest the Qantas International and Freight division recorded an underlying EBIT loss of $238 million and underlying EBITDA profit of $448 million.
However, the group said the heavy losses by its international passenger business were significantly offset by the freight division.
Qantas Freight reportedly benefited from high yields due to the continued shortage of cargo space globally, as well as from the domestic shift to e-commerce.
It also experienced strong international freighter yields due to global shipping disruption and consumer spending in the United States.
The positive results were also attributed to the continued support of Australian exporters via IFAM, which ended on 30 June this year.
Mr Joyce said the freight subsidiary was one of the “standout performers” throughout the pandemic (along with Qantas Loyalty, a data-led subsidiary driving the airline’s rewards program).
“Freight posted another record result in FY22, and while international yields are coming down, we believe the market has undergone a structural shift,” Mr Joyce said.
“Before COVID, Australia lagged most of the world in e-commerce, but lockdown saw us catch-up.
“Those goods ordered online are filling our aircraft, which is why we’re investing to expand our freighter fleet.”
The group highlighted the expansion of the Qantas Freight fleet in a statement to the ASX, as part of its fleet investment program to participate in market growth opportunities.
The division will receive two converted A330s in the second half of next year and six A321 freighters from early 2024.
The new aircraft will replace five 737-400 freighters and are expected to help meet demand from a permanent increase in e-commerce from customers such as Australia Post.
Looking ahead to the 2023 financial year, Qantas expects the strong yields experienced by Qantas Freight this year to moderate but remain above pre-COVID levels.
