Qantas reports US$5.3million profit
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Australia’s national carrier Qantas has released its end of year financial results, detailing a US$5.3 million profit after tax.
The figures represent an underlying profit before tax of US$172 million and statutory profit before tax of US$15.2 million.
The results are welcome news to many at the company, after it recorded historic losses last year. The highlight of this year’s results was the company halving the losses of Qantas International to around US$220 million, a result that many have put down to the tie-up up with Emirates.
The company’s CEO Alan Joyce commented: “We have launched a global partnership with Emirates – shifting our hub for Europe flights to Dubai – maintained our strong domestic market position with the Qantas-Jetstar dual brand strategy, continued building Jetstar in Asia, and achieved another record result with Qantas Loyalty.”
“The market is very tough. But we are focused on the elements we can control. We have Australia’s leading airlines and loyalty business – and we have a clear strategy to build an even stronger business for the future.”
Qantas has also had success with its domestic service, after QantasLink moved to Sydney’s Q3.
The company has now finished its fleet renewal programme and intimated it wants to continue with its programme of on-market share buyback, with US$89 million put towards the cause.
Welcome to your new home #QantasLink – now operating from T3 at Sydney Domestic. http://t.co/2hgzfCWCLX
— Qantas (@Qantas) August 14, 2013
“Over the 12 months, the domestic market grew at its fastest rate in the past eight years,” he continued. “We responded to aggressive levels of competitor capacity growth, with the group’s domestic operations holding our strong position and contributing more than US$403 million to underlying EBIT.
“Our financial position has been strengthened by the actions we have taken over the past 12 months: reducing debt, extending our maturity profile and taking a prudent approach to capital expenditure.
“We have also continued our policy of selling non-core assets where appropriate…our focus remains on building long term shareholder value. We will continue to be disciplined in managing capital expenditure and costs, while improving the customer experience and engaging our people to provide the best possible service.”
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