Qantas back in the black
A long-term cost cutting strategy is paying off for Qantas, which has reported its best half-year profit since 2010.
Underlying profit before tax was AU$367 million for the six months to the end of December, an improvement of $619 million compared with the same period last year.
The airline said the success was mainly down to its transformation programme, but also due to increased revenue per available seat, reduced depreciation, removal of the carbon tax in Australia and lower fuel prices.
It is now targeting $675 million of transformation benefits in financial year 2015, up from the previous target of $600 million.
Qantas International was profitable for the first time since the global financial crisis, with underlying EBIT of $59 million representing a turnaround of $321 million on the previous year.
The airline said it expected a return to profit for international, and all other divisions, in the financial year 2015.
Qantas CEO Alan Joyce said: "The decisive factor in our best half-year result for four years was our complete focus on the Qantas Transformation programme.
"It’s clear that without the impact of transformation, we would not be announcing a profit today.
"Our people have worked hard and made a huge contribution to bring about the change we need. They deserve great credit for this result.
"What sets this transformation apart is that we are reducing costs permanently while at the same time delivering Qantas’ best ever fleet, product and service.
"We are meeting or exceeding all our targets as we build a sustainable future for Qantas with an emphasis on growing long-term shareholder value.
"Our financial position is significantly stronger because of the actions we’ve taken, and we are giving Qantas a solid foundation for growth in earnings."
Looking forward, Qantas said overall demand is stable, while demand is mixed in the Australian domestic market.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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