Qantas sees profit fall 68%
Qantas’ pre-tax profit fell 68% in the second half of 2008 due to high fuel costs and the economic downturn.
The airline unveiled a profit before tax of A$288 million for the six months to December 31.
It reaffirmed its full-year profit before tax outlook of around A$500 million for the 12 months to June 30.
But it warned that this outlook remains subject to no further significant change in market conditions and fuel prices.
The airline blamed fuel prices and the global financial downturn for the slump in profits, but claimed it was still in a good position compared to its peers.
“The aviation sector is experiencing a high degree of volatility,†said chief executive officer Alan Joyce.
“Numerous airlines have failed over the past year, while many are unable to produce profits and are at risk of becoming unsustainable.
“With two flying brands and a diversified portfolio of businesses, the group has the scale and scope to respond rapidly to market developments and will be well-positioned to resume growth as soon as conditions improve.â€
The airline’s chairman Leigh Clifford said a programme of cost-cutting, capacity reduction and seat sales to stimulate demand had helped it avoid a worse financial result.
“Our revenues have come under pressure, but through calibrating our network, stimulating demand through attractive pricing, maximising the performance of our diversified businesses, and restraining costs, we have achieved a very good result in challenging times,†he said.
By Bev Fearis
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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