Qantas
QANTAS ANNOUNCES PROFIT RESULT, RESPONSE TO ECONOMIC CONDITIONS
Highlights:
Strong portfolio performance: o Continuing record results for Jetstar and Qantas Frequent Flyer.1 o Revenue growth of 6 per cent. o Yield and unit cost improvements. o Offset by industrial action and record high fuel costs.
Improvement in net operating cash flow of 5 per cent.
Strategic initiatives to transform Qantas International and grow Jetstar in Asia.
SYDNEY, 16 February 2012: The Qantas Group today announced underlying profit before tax2 of $202 million for the half-year ended 31 December 2011, a decrease of $215 million compared with the prior corresponding period. Statutory profit before tax was $58 million.3
The result reflects the $194 million financial impact of industrial action during the first half, as well as increased fuel costs compared with the prior corresponding period. Total fuel costs in the half were $2.2 billion, up $444 million (or 26 per cent).
The Group also today outlined measures that respond to global economic conditions and the structural challenges facing Qantas, including the European finance crisis, the changing Australian economy and the need to increase efficiency and competitiveness. These steps will position the Group for a strong, sustainable future and build long-term shareholder value.
They include a reduction in capital expenditure of $700 million over 2011/12 and 2012/13; a review of Qantas’ heavy maintenance footprint in Australia; and changes to Qantas’ catering and engineering operations.
Qantas Chief Executive Officer Alan Joyce said the first-half result was a good performance in challenging circumstances. “The termination of industrial action on 31 October 2011 brought operational certainty for the Qantas Group, our customers and our shareholders,” Mr Joyce said.
“While the impact of the dispute was severe, our portfolio of businesses once again demonstrated its resilience in difficult conditions. Improvements in
Highlights:
Strong portfolio performance: o Continuing record results for Jetstar and Qantas Frequent Flyer.1 o Revenue growth of 6 per cent. o Yield and unit cost improvements. o Offset by industrial action and record high fuel costs.
Improvement in net operating cash flow of 5 per cent.
Strategic initiatives to transform Qantas International and grow Jetstar in Asia.
SYDNEY, 16 February 2012: The Qantas Group today announced underlying profit before tax2 of $202 million for the half-year ended 31 December 2011, a decrease of $215 million compared with the prior corresponding period. Statutory profit before tax was $58 million.3
The result reflects the $194 million financial impact of industrial action during the first half, as well as increased fuel costs compared with the prior corresponding period. Total fuel costs in the half were $2.2 billion, up $444 million (or 26 per cent).
The Group also today outlined measures that respond to global economic conditions and the structural challenges facing Qantas, including the European finance crisis, the changing Australian economy and the need to increase efficiency and competitiveness. These steps will position the Group for a strong, sustainable future and build long-term shareholder value.
They include a reduction in capital expenditure of $700 million over 2011/12 and 2012/13; a review of Qantas’ heavy maintenance footprint in Australia; and changes to Qantas’ catering and engineering operations.
Qantas Chief Executive Officer Alan Joyce said the first-half result was a good performance in challenging circumstances. “The termination of industrial action on 31 October 2011 brought operational certainty for the Qantas Group, our customers and our shareholders,” Mr Joyce said.
“While the impact of the dispute was severe, our portfolio of businesses once again demonstrated its resilience in difficult conditions. Improvements in