Vanessa Hudson speaks in Sydney on Aug. 28.

(Bloomberg) -- Qantas Airways Ltd. Chief Executive Officer Vanessa Hudson said the relentless appetite for travel since the Covid pandemic shows no sign of faltering as the airline ordered more Airbus SE jets and splashed cash at staff and shareholders. The carrier’s shares surged to a record.

“We are seeing incredibly strong demand,” Hudson said Thursday on a call after the airline reported earnings. “The intention to travel, and Australians’ love of travel, continues.”

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Qantas reported a 15% jump in full-year profit to A$2.4 billion ($1.6 billion) and ordered 20 additional A321XLR aircraft.Vanessa HudsonPhotographer: Carla Gottgens/Bloomberg

Hudson described an air travel market that’s booming across all price points. Budget carrier Jetstar carried a record number of passengers in the 12-month period and posted a jump in revenue and profit margins. Domestic corporate travel — where fares are typically higher — has almost returned to pre-Covid levels. There’s also “very strong” demand for premium seats on international routes, Hudson said.

The bumper profits are allowing Hudson to reward both shareholders and employees. Around 25,000 rank-and-file Qantas staff — most of the workforce — were awarded A$1,000 in shares. Investors will share a base dividend of A$250 million and an additional one-off payment of A$150 million.

Qantas shares jumped as much as 14% in early Sydney trading. At 12:06 p.m. the stock was up 9.1% at A$12.12, swelling the airline’s market value to A$18.3 billion.

The latest purchase of extra aircraft underscores the carrier’s confidence in the sustainability of bookings. The order also accelerates an Airbus-dominated fleet revamp at Qantas that includes replacing aging Boeing Co. 737 jets on domestic routes.

After receiving 17 new planes in the 12 months ended June, Qantas will receive 20 more in the current fiscal year, and an additional 29 aircraft in the following 12 months.

The freshly ordered Airbus XLRs will fly longer domestic routes such as Perth to Australia’s east coast, as well as short-haul international routes. The plane’s extra range — it can fly up to 8,700 kilometres (5,400 miles) — beats the outgoing Boeing 737 by more than 3,000 kilometres, Qantas said.

Hudson said bookings on existing direct long-haul routes such as Perth-London reinforce the business case for planned ultra-long-haul flights connecting Sydney with London and New York. Those services are due to start in 2027 on new Airbus A350 aircraft.

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Since taking over in late 2023, Hudson has largely overseen a repair operation at Qantas. She has spent company funds and personal capital restoring the airline’s tattered reputation by investing in customer services and overhauling the frequent flyer business. At the same time, a lack of flight capacity worldwide has given airlines pricing power and helped Hudson deliver a profit windfall.

“The airline has stabilized, costs are being managed effectively and customer sentiment is slowly being rebuilt,” said Josh Gilbert, a market analyst at eToro. “The results speak for themselves.” Gilbert called Jetstar “the star performer.”

Thursday’s results come after searing criticism of the airline by the Federal Court of Australia earlier this month.

Justice Michael Lee on Aug. 18 slapped Qantas with a record A$90 million fine for illegally sacking almost 2,000 ground workers during the pandemic. In his judgment, Justice Lee questioned the airline’s contrition for the firings, as well as its commitment to reform. Lee said the case had shown there was “a need for real change” inside Qantas and he expressed his dissatisfaction that Hudson hadn’t personally given testimony in court.

Hudson addressed the court judgment directly on Thursday.

“I want to reiterate our apology,” she said. “The culture at Qantas has changed, is changing, and will continue to change. I can assure you we have taken lessons away from this and are changing Qantas for the better.”

Hudson also defended her decision not to appear in court in person. “There was nothing more for me to add,” she said.

(Updates with details of Jetstar’s results in 4th paragraph, analyst comment in 12th.)

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