Airlines take Cost-Saving Measures, Raises Fares, And Reap Big Profits

Airlines such as Singapore Airlines Ltd., International Consolidated Airlines Group SA, and Qantas Airways Ltd. are posting record profits as coronavirus fears ease worldwide and most countries open their borders to international travelers.

In today’s BNN breaking news network, Qantas Airways reported a net profit of $1.43 billion in H2 2022. Its domestic operations, which generated $785 million in revenue, contributed to the company’s record profits in the six months ending December 2022. Its overseas operations contributed $464 million in revenue. Its CEO, Alan Joyce, said the company completely erased its previous-year loss of $1.28 billion to post a record profit.

Confident in maintaining record profits

Alan is optimistic that the airline will continue to post record profits in its future operations. Qantas Airways will invest $100 million over the next three years to improve lounge facilities for its passengers. It will upgrade and refurbish business lounges in Melbourne and Sydney. It also improves the luxury first-class lounge at Heathrow airport in London.

The airline lures its Australian travelers with its discount fares and encourages them to travel on Thursday, Wednesday, and Tuesday. However, it also collects more fare in domestic markets compared to other airlines. Alan said several customers are willing to pay a premium to enjoy access to 51 lounges across the world. Frequent flyers enjoy the benefits of free food onboard and free WiFi.

International Consolidated Airlines Group SA reports a net profit of $456.7 million 

International Consolidated Airlines Group SA, which holds Vueling, Iberia, and British Airways, posted a net profit of $456.7 million in 2022. It posted a net loss of EUR 6.93 billion in the previous year. International Consolidated Airlines posted revenues of EUR 23.07 billion in 2022, up from EUR 8.46 billion in the previous year.

Singapore Airlines Ltd. reports net profits of S$ 628 million

Singapore Airlines Ltd reported net profits of S$ 628 million in the third quarter of the fiscal year 2023. The airline expects to witness a slowdown in its profitability in the future because of lackluster cargo and softening passenger yields. By excluding forex losses, the airline could have made S$ 824 million in net profits.

In the latest breaking news, IAG, which holds Iberia and Aer Lingus, reported a 173% surge in its profits to $4.45 billion in 2022. It will spend 400 million euros to buy the remaining 80% stake in Air Europa, a Spanish airline.

The CEO of IAG, Luis Gallego, while commenting on the financial performance, said the airline returned to the black after the beginning of the coronavirus. He keeps on saying that the airline would also maintain the same momentum to post record profits this year.

Strong demand helped Delta Airlines post higher revenues in 2022 compared to the previous year. American Airlines Group Inc. also said it posted higher revenues in Q4, which are the highest in its history. Robert Isom, CEO of American Airlines, said the company posted record revenue despite operating at 6.1% below its capacity.

However, airlines in Asia and the Pacific are lagging in recovery. China had closed its borders due to the coronavirus’s impact until recently when it reopened them. Most airlines operating in Asia are likely to post a loss of $6.6 billion in 2023.