Qantas soars with record profit
SYDNEY – Qantas has announced a record profit before tax of $1,03 million (US$840m) for the year ended June 30, 2007, a 53.8 per cent increase on the 2006 profit result.
Qantas chairman Margaret Jackson, said the net profit after tax of A$720 million (US$588m) was also a record, and that the company had generated a return above the cost of capital invested in all the businesses.
The profit includes a provision of A$47 million (US$38.3m)against liabilities Qantas may incur in the United States for involvement in an alleged freight cartel.
Directors have approved an on-market buy-back of up to approximately 10 per cent of Qantas shares which would, when completed, amount to a reduction of capital of more than A$1 billion.
Jackson said the company’s cash position had improved by A$461 million (US$376m) to $3.4 billion, providing surplus capital to make the share buy-back possible.
Jackson said the past year had been unsettling for Qantas employees, customers and investors as a result of the Airline Partners Australia (APA) takeover bid.
“We have now moved on and are concentrating on future growth and opportunities.”
Qantas chief executive, Geoff Dixon, said the 2006/07 result and Qantas’ strong operating position was underpinned by the airline’s two-brand strategy.
He said the establishment of Jetstar in May 2004 had transformed the Qantas Group’s flying businesses.
Dixon said the performance of both the Jetstar and Qantas international operations since Jetstar commenced widebody overseas flying in November 2006 indicated the successful strategy would be replicated in the international market.
“Jetstar has grown domestic leisure travel and quickly established itself in overseas leisure markets, enabling Qantas to concentrate more on business markets with a significant yield premium,” Dixon added.
Ian Jarrett
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