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.
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.