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.
👉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.
💡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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