Performance against our Financial Framework

Reporting on the financial performance of the Qantas Group.


The Qantas Group aims to achieve top quartile Total Shareholder Returns (TSR) relative to the ASX100 and global airline peers. In line with this objective and the Group’s Financial Framework, we report on a number of metrics over time. Where appropriate, the Group reports on both the statutory and underlying metrics. Underlying Profit Before Tax is a non-statutory measure and is the primary reporting measure used by the chief operating decision making bodies for the purposes of assessing the financial performance of the Qantas Group. ESG metrics have also been incorporated into the Financial Framework. The COVID-19 pandemic has had an extensive impact on the Qantas Group which is reflected in our financial performance.

Diagram flow of our financial chart

1. Earnings Per Share. 2. Refer to slide 18 of the Supplementary Presentation for calculation of target Net Debt range. 3. Return on Invested Capital (ROIC). Refer to slide 17 of the Supplementary Presentation for the calculation of ROIC. 4. Weighted Average Cost of Capital (WACC), calculated on a pre-tax basis. 5. Target of 10 per cent ROIC allows ROIC to be greater than pre-tax WACC. 6. Target Total Shareholder Returns within the top quartile of the ASX100 and global listed airline peer group as stated in the 2021 Annual Report, with reference to the 2021-2023 LTIP.

Net debt

FY22 net debt decreased compared to June 2021. Cash generation improved with increased flying activity in the second half of the financial year and net debt levels are now at the lowest levels since the GFC.

net debt profile

Net debt includes on balance sheet debt and aircraft operating lease liabilities under the Group’s Financial Framework.

Group Return on Invested Capital

Return on Invested Capital (ROIC) is the primary financial return measure for the Group. Our target is to achieve ROIC greater than our Weighted Average Cost of Capital (WACC) through the cycle. Our threshold of 10 per cent ROIC allows ROIC to be greater than pre-tax WACC through the cycle. Since our turnaround in 2015 and prior to the COVID-19 pandemic the Group had been consistently delivering ROIC well in excess of this threshold. As a result of the impact of COVID-19, ROIC did not met the threshold of 10 per cent in FY20, FY21 and FY22.

group return on invested capital

Calculated as ROIC EBIT for the 12 months to 30 June, divided by 12 months average Invested Capital.

Net free cash flow

Targeting an optimal capital structure and measuring ROIC performance provides a platform for making disciplined decisions regarding shareholder distributions, reinvestment in our business and net debt reduction. We will invest prudently in capital expenditure from operating cash flow to increase future returns, with surplus capital returned to shareholders. Like other financial metrics, Net free cash flow has been impacted by the COVID-19 pandemic, but made a strong recovery in FY22 as flying activity resumed.

Net free cash flow table

Net Free Cash Flow is net cash from operating activities less net cash used in investing activities (excluding aircraft operating lease refinancing).

Shareholder returns

Since FY15 and prior to the COVID-19 pandemic the Group had strong history of generating surplus capital and returning this to shareholders. To preserve balance sheet strength, under its Financial Framework, there were no shareholder distributions in FY22. However, in August 2022 the Group announced an on-market share buy-back of up to $400 million, which will aim to complete in the first half of FY23.

Shareholder returns graph

Earnings per share

The Group tracks Earnings Per Share (EPS) on a statutory basis. Earnings per share for FY22 was less than zero due to the impact of the COVID-19 pandemic.

earnings per share

Underlying Earnings Per Share calculated as Underlying Profit Before Tax less tax benefit/expense (based on the Group's effective tax rate for the period) divided by weighted average number of shares during the year.

See further details on the Group’s history of capital managementOpens external site in a new window.

Delivering today


Refer to the Review of Operations section in the Qantas Annual Report 2022Opens external site in a new window for definitions and explanations of non–statutory measures. Unless otherwise stated, amounts are reported on an underlying basis.