Qantas Posts Record Profit As Turnaround Continues

Australia’s Qantas Airways announced a record underlying profit of AUD$1.53 billion (USD$1.167 billion), up 57 percent from the previous financial year.

After tax profit was AUD$1.03 billion, up from AUD$560 million.

Net passenger revenue for the year to June 30 was AUD$13.96 billion, from AUD$13.6 billion in the prior year period.

Qantas chief executive Alan Joyce said this was “the best result in the 95 year history of Qantas and the best result in Australian aviation history, full stop”.

Qantas Domestic, Qantas International and Jetstar all had record results and increased margins in the financial year.

Underlying earnings (EBIT) for Qantas Domestic were up 20 percent at AUD$578 million as it adjusted capacity to meet the market.

Earnings at Qantas International almost doubled to AUD$512 million as it increased seasonal services and added capacity to high growth markets in Asia.

Jetstar underlying earnings also almost doubled (97 percent) to AUD$452 million as Asia-Pacific markets continued to grow.

“Our transformation programme has now unlocked AUD$1.66 billion in permanent cost and revenue benefits. We also continue to benefit from lower global fuel prices”, CEO Joyce said.

Group fuel costs were down AUD$664 million, a 17 percent saving on the previous year.

Qantas declared a final dividend of seven cents per share and will buy back up to AUD$366 million of stock. It also announced a Record Results Bonus for 25,000 staff of up to AUD$3,000 each.