Qantas unveils record profit despite rising fuel costs
Qantas has unveiled record profit for the last financial year despite rising fuel costs.
Underlying profit was $1.6 billion, 14% higher than last year and 5% higher than its last record profit in 2016.
"These numbers show a company that’s delivering across the board," said CEO Alan Joyce.
"Our investment in free Wi-Fi and cabin improvements are delivering a better experience for customers as well as higher earnings for Qantas and Jetstar. The overall value for the travelling public remains extremely strong, with domestic sale fares almost 40 per cent lower in real terms than they were 15 years ago.
"We’re seeing healthy demand across key sectors matched with improving levels of capacity discipline, which is a positive sign for the year ahead.
"This record result comes despite higher oil prices. We’re facing another increase to our fuel bill for FY19 and we’re confident that we will substantially recover this through a range of capacity, revenue and cost efficiency measures, in addition to our hedging program."
The group’s fuel bill was up by almost $200 million in the 2018 financial year and is expected to be up another $690 million in 2019.
"It’s a significant increase – but we’re confident we will substantially recover it, particularly given the strength of our forward bookings, our advantages in both the domestic and international markets, and our continued focus on transformation," said Joyce.
Qantas has set aside AU$67 million to reward up to 27,000 non-executive employees with a bonus of $2,500 each.
"This brings us to a total of more than $300 million in bonuses for frontline staff since 2015," it said.
It also today unveiled a programme of lounge upgrades, covering six airport.
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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