(Reuters) – Australian flag carrier Qantas said on Friday it expects lower fuel costs than previously estimated after a drop in global jet fuel prices.
The airline is now expecting a first-half total jet fuel costs of around A$2.55 billion ($1.69 billion), lower than the A$2.7 billion it had estimated earlier.
Qantas’ current fuel cost estimate is on the basis of current jet fuel price of A$140 a barrel, lower than A$150 when it was previously estimated.
The firm said its A$400 million share buyback is currently 45% complete at an average price of A$7.23 apiece. The airline anticipates its finalisation by the end of the year.
The company, whose reputation has been battered in the recent past amid regulatory and legal battles, is trying to navigate a path of reassuring customers that it is taking the complaints of widespread service problems seriously.
Trading of Qantas’ loyalty program was in line with expectations, the company said, following the launch of a flight rewards program.
The business continues to expect at least 10% underlying earnings before interest growth in financial 2025, Qantas said regarding its loyalty program.
($1 = 1.5060 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Tasim Zahid and Alan Barona)
