Qantas to buy 51% stake in TripADeal for $600 million

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Qantas to buy 51% stake in TripADeal for $600 million

Sydney Airport as Australia reacts to the new coronavirus Omicron variant in Sydney Airport

Qantas Airways will buy a 51% stake in the online travel agency TripADeal for an undisclosed amount, as it seeks to tap a recovery in demand for packaged holidays.

Easing COVID 19 restrictions and a rebound in leisure travel have resulted in a boom in the online holiday booking market over the past few months.

The deal is expected to add to the national flag carrier's earnings goals for full-year 2024, which includes a provision for Qantas to take full control of TripADeal in four years.

It would allow frequent flyers under the airline's loyalty division to use their points for any TripADeal holiday package, the Sydney-based company Qantas Loyalty was targeting a return to double-digit growth in 2022 and a underlying earnings before income tax of A $500 million $354.85 million to A $600 million by fiscal 2024, it said.

Earlier this month, Qantas announced it would buy the remaining stake in Alliance Aviation Services for $610.8 million to expand its presence in the charter business.