The rush to travel once borders opened boosted its second-half performance and helped lower debt levels, although it has also led to a host of operational problems that have contributed to the airline winding back planned increases in domestic capacity.
The bulk of the losses were reported in the first half when domestic and international borders were closed under strict measures to contain the Covid-19 pandemic. Joyce told analysts those targets were being achieved at this point, adding that was part of the reason the airline cut its domestic capacity forecast for 2022 and 2023 to 101% of pre-Covid levels, down from around 110% previously.
While demand has improved, Qantas in recent months has been trimming its domestic capacity from earlier forecasts due to widespread staff shortages at airports, high rates of crew illness in winter and elevated fuel prices. However, he noted the airline’s reputation had rebounded fairly quickly from prior low points such as in 2011, when management temporarily grounded the carrier amid an industrial relations dispute.