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· Posted on
February 21, 2024

Qantas has its strut back after releasing a quarterly update that's looking much better than expected

It's been a whirlwind couple of years for Qantas... but now it expects to generate a huge profit from June to December of this year.

What's the key learning?

  • Qantas a suffered a blow during the past two years because of lockdowns, grounded planes, lost baggage, and employee dissatisfaction.
  • Qantas expects to generate a profit of $1.2 - $1.3 billion for the period between June and December this year, which is more than double what most experts were expecting and highlights the pent-up demand for travel.
  • Pent-up demand is when an economy experiences an increase in demand for goods and services that has been building up over time.

👉Background: It’s been a whirlwind couple of years for Qantas with lockdowns, grounded planes, lost baggage and employee dissatisfaction.

👉 What happened: But none of this hurt the big Q when it announced its whopping update yesterday. Qantas expects to generate a profit of $1.2 - $1.3 billion for the period between June and December this year.

👉 What else: This was more than double what most experts were expecting and highlights the pent-up demand for travel after two years locked down.

What's the key learning?

💡Pent-up demand is when an economy experiences an increase in demand for goods and services that has been building up over time. It may be due to something like a recession.. or in this case.. a major lockdown!

💡After delaying the purchasing of goods and services for a long period of time, people typically spend a heap more money, In fact, in June 2020, the savings-to-income ratio was nearly 20% - nearly an all-time high.

💡So despite the recent rise in airline prices, Australian consumers are still spending on travel and this pent up demand is clearly offsetting weakness around consumer spending.

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