Qantas has posted a full-year underlying pre-tax loss of $1.86 billion after border closures and travel uncertainty as the COVID-19 pandemic weighed on earnings.

The airline’s net loss after tax for the year to June 30 narrowed to $860 million, compared to $1.7 billion the year before.

“These figures are staggering and getting through to the other side has obviously been tough,” CEO Alan Joyce said on Thursday.

But revenue for the year jumped 53.5 per cent to $9.11b following a revival in global air travel after restrictions eased.

Shares in the national carrier jumped on the news. By 1025 AEST, Qantas shares were up 8 per cent to $4.91 in a firm Australian market.

Qantas said flying levels for the year averaged 33 per cent of pre-pandemic levels after the pandemic significantly disrupted air travel, but finished the financial year at 68 per cent, spurred a strong rebound in travel demand.

“We always knew travel demand would recover strongly but the speed and scale of that recovery has been exceptional,” Mr Joyce said.

That, along with lower debt levels, enabled the airline to announce an on-market share buy-back of up to $400m, although it will still not pay any dividend for the year.

“Our debt is now below our target range – so in addition to the investments we’re making in customers and our people, we’re in a position to start repaying shareholders,” Mr Joyce told reporters.

The carrier’s net debt is down to $3.9b at the end of FY22, from a high of $6.4b.

Qantas said long periods of low activity combined with restart costs resulted in an full year underlying loss of $1.1b at its domestic operations, which include low cost carrier Jetstar. 

However, sustained recovery in domestic travel demand translated into positive earnings for the fourth quarter, it said.

Heavy losses in the group’s international passenger business were again offset by a record performance of Qantas Freight, which benefited from high yields amid shortage of cargo space globally.

Overall, Qantas’ International and Freight division posted an underlying loss of $238m.

Qantas Loyalty accelerated its earnings growth to double digits in the second half.

The airline says it is now focusing on responding to current operational challenges. 

Key customer measures including contact centre wait times, cancellation rates and mishandled bag rates are trending back towards pre-pandemic standards during August 2022, it said. 

By Prashant Mehra in Sydney

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