Qantas Swings Back To H1 Profit

Qantas Airways has swung back to a first-half profit, delivering its best interim performance in four years, as its massive transformation program continues to reap results.

In the six months to December 31, Qantas posted a statutory net profit of $203 million, from a loss of $235m a year earlier.

On an underlying basis, the national carrier posted a net profit of $367m, a sharp improvement on the $252m loss it posted in the previous corresponding period, and beating its target for earnings of between $300m and $350m.

The national carrier flagged last year that it expected to return to an underlying profit in the first half, as it reaps the benefits of a wide-reaching transformation strategy as well as a drop in the Australian dollar and oil prices.

Revenue in the period rose to 2.1 per cent to $8.07 billion, from $7.9bn a year earlier.

Qantas declined to pay an interim dividend.

The airline said the repeal of the carbon tax was significant factor in the underlying profit result, adding $59m.

Qantas chief executive Alan Joyce pointed to the removal of the carbon tax as one of the “positive drivers” behind the result.

Lower fuel prices also improved the underlying profit by $33m.

“While fuel prices produced a modest benefit in the first half, we expect fuel costs for the full year to be no more than $4 billion at current prices – which will be a significant boost to the bottom line in the second half,” he said.

This news story is reprinted from www.theaustralian.com.au

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