Qantas posts second highest underlying profit in the company’s history.
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Qantas has just released its 2016/17 financial results, with a statutory pre-tax profit of $1.18 billion and an “underlying profit before tax” of $1.4 billion. That was 8.6% lower than last year’s record, and slightly ahead of previous forecasts due to a strengthening in the group’s domestic business.
All parts of the Qantas Group delivered strong returns, the company said, with Qantas and Jetstar domestic reaching a combined record $865 million in underlying earnings. Qantas International weathered strong competition and saw improved conditions in the second half of the financial year, with an underlying result of $327 million.
Qantas Loyalty also recorded a record $369 million underlying result, while overall the group “met all the objectives of its financial framework. During the year another $470 million in “transformation benefits” were delivered, outperforming the 3 year $2 billion Qantas Transformation program target by $125 million.
CEO Alan Joyce said the result marked the completion of a turnaround plan which had repositioned Qantas as “one of the most profitable airline groups in the world”.
The results announcement also included a range of initiatives including a major upgrade of the airline’s A380 cabins, a new Melbourne Domestic lounge and an evaluation plan for proposed ultra-long range aircraft for Qantas International which, once developed by manufacturers, would allow non-stop flights from Australia’s east coast to New York and London.
