Dreamliner compensation helps lift Qantas profits
Compensation from Boeing for Dreamliner delays has helped Qantas boost its profits.
The Qantas Group announced net profit of AU$111 million (£75m) for the six months ended December 31, up from AU$42 million the previous year.
The company had a one-time pretax gain of $140 million from the cancellation of Boeing Dreamliner orders.
The international division made a loss of $91 million in the six months to December, an improvement from a $262 million loss in the previous corresponding period.
Qantas CEO Alan Joyce said the group was “delivering against all its strategic goals”.
“During the first half of 2013 we increased underlying profit by 10%, announced a global aviation partnership with Emirates, launched Jetstar Japan, reinforced our position in the Australian domestic market, reduced comparable unit costs by 3%, announced the early repayment of $650 million in debt, commenced a share buy-back and sold non-core assets.”
The Qantas boss said the operating environment remained “complex and volatile”, but Qantas was beginning to realise the benefits of tough decisions made over the past 18 months.
Qantas also announced it would upgrade its entire fleet of Airbus A330s and order new Boeing 737-800s to drive its strategy in the international and domestic markets.
Beginning in late 2014, Qantas will reconfigure the interior of 10 Airbus A330-300s and 20 A330-200s with a new flat seat in business class, refreshed economy cabin and a new inflight entertainment offering.
Qantas International will operate the A330-300s on its network between Australia and Asia, while Qantas Domestic will operate the A330-200s on routes between the east coast and Perth – enabling the final retirement of the group’s Boeing 767s.
by Ian Jarrett, TravelMole Asia Pacific
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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