Qantas announced that it expects pre-tax profit of nearly $2.5 billion for the financial year.
👉 Background: Qantas is Australia's national airline who has never had a fatal crash in its entire history. But, it hasn't always been easy being Qantas - it lost close to $7 billion during COVID.
👉 What happened: But these difficult years are a relic of the past because in its quarterly update, Qantas announced that it expects pre-tax profit of nearly $2.5 billion for the financial year. They expect flying activity to be at 93% of pre-COVID levels by the end of December.
👉 What else: However, the movements in the foreign exchange market have whacked its bottom line. And while the good times are rollin', Qantas is investing $100m to buy back its own shares.
💡In an increasingly globalised world, businesses are more exposed to foreign exchange risk than ever before.
💡When a business operates internationally, it earns revenue and incurs expenses in different currencies - that are often moving in different directions.
💡 While sometimes this can hurt company profitability, like Qantas, it can also work for companies.
Sign up for Flux and join 100,000 members of the Flux family
