Qantas Airways annual net profit jumps 14.9%

Qantas Airways annual net profit jumps 14.9%

SYDNEY: Australian flag carrier Qantas posted a 14.9 percent jump in annual net profit on Thursday (Aug 23) with healthy returns across all sectors of its business and despite higher oil prices.

The airline's result in the 12 months to Jun 30 came in at Aus$980 million (US$720 million), with higher earnings from its domestic arm a key contributor.

Underlying profit before tax, its preferred measure, which strips out one-time costs, was up 14 per cent at Aus$1.4 billion, a new record for Qantas.

Chief executive Alan Joyce said the strong numbers reflected a buoyant market as well as the benefits of the airline's ongoing work to improve the business.

This has seen an aggressive restructuring of the business over the past few years, with jobs slashed and its fleet reduced and a shift away from loss-making routes.

"These numbers show a company that's delivering across the board," he said.

"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," he added.

"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 programme."

A strong result was always on the cards after Qantas reported a bumper 17.9 per cent jump in interim net profit in February, and announced a share buyback.

Qantas declared a final dividend of 10 cents per share.

Source: AFP/de