Qantas results for half year ending December 31
Highlights
-
Profit before tax of $483.5 million
-
Net profit after tax of $352.6 million
-
Revenue of $6.8 billion
-
Interim dividend of 11 cents per share fully franked
-
Earnings per share of 18.4 cents
Qantas today announced a profit before tax of $483.5 million for the half-year ended 31 December 2005, a 3.4 per cent decrease on the halfyear to 31 December 2004.
The 2005 half-year profit includes a one-off restructuring cost of $69.6 million under the airline’s Sustainable Future Program. The 2004 half-year results included a release of surplus revenue accounting provisions of $52.1 million.
Adjusting for these two items, profit improved by $104.6 million, or 23.3 per cent during the six months to 31 December 2005.
The result was achieved in very difficult trading conditions, with fuel prices increasing costs by $689.8 million before hedging benefits of $214.7 million, and aggressive competitor capacity increases in the international market.
Net profit after tax was $352.6 million, down 9.6 per cent on the comparative half-year.
This figure reflects the impact of the restructuring charges and fuel prices, but also reflects a lower tax expense in the comparative 2004 half-year when the Qantas Group entered into Tax Consolidations.
The Directors declared a fully franked interim dividend of 11 cents per share, an increase of 1 cent per share on the prior half-year.
The Chairman of Qantas, Ms Margaret Jackson, said the increased dividend reflected the confidence of the Board and Management in the airline’s future.
“We believe we can continue to grow and invest profitably despite the obvious challenges faced by the industry in all parts of the world.
“While doing this, it is also important that we continue to reward our shareholders by paying franked dividends,” she said.
“Despite publicity about job losses and some negative Union comments about Qantas, the facts are that very few Australian companies invest like we do in the growth of the nation or grow employment so consistently, and no other company has better overall employment conditions.”
The Chief Executive Officer of Qantas, Mr Geoff Dixon, said that Qantas’ performance, like all airlines today, was more and more being influenced on an ongoing basis by the price of fuel.
“Fuel costs climbed by 58 per cent in the half year and represented 28 per cent of our net expenditure. Without our successful hedging strategies, this would have been 31 per cent.
“All our business transformation initiatives are now focused on enabling Qantas to meet its future expenditure commitments and profit projections with a fuel cost above US$60 a barrel.”
Graham Muldoon
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026