Qantas shares flying through $105 million legal turbulence
Qantas shares dipped slightly after announcing a $105 million settlement for a class action regarding cancelled flights during the COVID-19 pandemic.Summary
Qantas Airways (ASX: QAN) shares experienced a minor decrease, falling 0.3% to $8.64 amidst news of a $105 million settlement concerning a class action lawsuit. The lawsuit, initiated in August 2023, alleged breaches of obligation regarding customer refunds for flights cancelled between January 1, 2020, and November 1, 2022. Qantas has agreed to the settlement without admitting liability, pending Federal Court approval. The airline has already accounted for this cost in its financial provisions, with the impact to be reflected in the second half of the 2026 financial year.
Despite this legal hurdle, Qantas recently reported positive first-half results, with a 6% year-on-year revenue increase to $12.9 billion and an underlying profit before tax of $1.456 billion. However, a 25% reduction in the interim dividend disappointed some investors, contributing to a 9.2% share price decline on the day of the results release.
CEO Vanessa Hudson highlighted the company’s ongoing fleet renewal program, noting the positive impact of new aircraft on Jetstar’s profitability. Qantas anticipates similar benefits as its own new aircraft are integrated into the fleet.
(Source：The Motley Fool Australia)