Qantas says record domestic result offsets intense global competition

Qantas Airways Airbus A330-200
Qantas Airways Airbus A330-200
Author

25 August, 2017

Last year's result, a record underlying profit of $1.53 billion just two years after a $2.8 billion loss, was boosted by cash from the sale of the Sydney Domestic Terminal.

Although down almost 9% from that record, Chief Executive Alan Joyce says the company's turnaround is complete.

Underlying profit still fell by almost 9% on the prior year, but Qantas said it was the second-best result in the airline's history after last year's record.

"If the High Court says it goes ahead, then we will be fully behind it", he said when asked about his intentions after unveiling Qantas' full-year profit on Friday.

Qantas has reported an underlying profit before tax of $1,401 million and a statutory profit before tax of $1,181 million for the 12 months ended June 30th, 2017.

Continued strength in its core markets helped the Jetstar Group deliver the second highest profit in its 13 years of operation.

"In that time, we've tackled some hard structural issues, become a lot more efficient and kept improving the customer experience".

Global capacity will increase 5 per cent as it expands on new routes into Asia.

Chief executive Alan Joyce said the result marked the completion of the turnaround plan which has repositioned Qantas as one of the most profitable airlines in the world.

The Kiwi carrier's full year earnings fell 21 per cent in an increasingly competitive market, but were still the second highest ever as the airline continues to benefit from lower jet fuel prices and the country's ongoing tourism boom.

"We're seeing increased demand for premium economy and business class on the long-haul routes that the A380 operates, including from people using their Qantas points to upgrade", Joyce said.

Qantas said that once the latest buyback is completed, the number of Qantas shares is expected to have been reduced by more than 20 per cent since October 2015. A further on-market buyback of up to $373 million has been announced.

"We'll look forward to working with Qantas to see how we can meet its requirements for Sydney-London non-stop", Airbus said in its statement. He was paid $14.3 million previous year.

"We have a plan to keep delivering sustainable returns well into the future".


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