Close sidebar

Modest Qantas profit against a “challenging backdrop”

written by australianaviation.com.au | August 29, 2013
Alan Joyce announces Qantas FY13 results. (Qantas)

Qantas has posted a modest profit after tax of $6 million and a near $100 million increase in underlying profit before tax from $95 million to $192 million for the 2012-13 financial year. Revenue growth was up barely one per cent to $15.9 billion.

“This result shows good progress in the Group’s strategy against a challenging backdrop, with high fuel costs and intense competition,” said Qantas Group CEO Alan Joyce. “Three of our four major business segments were profitable – Qantas Domestic, Jetstar and Qantas Loyalty. And we halved Qantas International’s losses compared with the last year.”

Joyce noted highlights for the financial year included maintaining the Group’s “profit-maximising” 65 per cent domestic passenger market share;  and $171 million in savings under its “Qantas Transformation” program including its international network restructure, aircraft reconfigurations and consolidation of operations, plus further savings of $257 million from “ongoing cost management”, leading to a five per cent reduction in unit costs.

Advertisement
Advertisement

Qantas Domestic remained the Group’s biggest profit generator, posting an underlying EBIT of $365 million, but that result was down 21 per cent. “We are two years into our five-year turnaround for Qantas International – and we are on track towards our target of a return to profit in FY15.”

Jetstar too recorded a profit fall, with underlying EBIT of $138 million down 32 per cent “reflecting tough Australian market conditions and start-up losses in Jetstar Japan and Hong Kong.”

And problem child Qantas International made another loss, of $246 million, but that was nearly half the loss of the previous financial year.

Qantas Loyalty again posted another strong result, contributing $260 million in underlying EBIT, up 13 per cent.

PROMOTED CONTENT

 

For just $59.95 a year, you can keep up to date with the very best of Australian Aviation each month, directly via our app! Our app is available on mobile, tablet and PC devices. So what are you waiting for? Go digital with Australian Aviation and read up on all missed special coverage, exclusive photos and editions. Subscribe now at australianaviation.com.au.

Leave a Comment

Your email address will not be published. Required fields are marked *

Each day, our subscribers are more informed with the right information.

SIGN UP to the Australian Aviation magazine for high-quality news and features for just $99.95 per year