Qantas ‘on track’ after record loss

Qantas ‘on track’ after record loss
By admin


Qantas is said to be ‘on track’ for a positive first-half underlying profit after posting a record $2.8 billion net loss in August, according to chief executive Alan Joyce.

Speaking at the carrier's AGM on Friday, Joyce said the “evidence grows daily that we are on track” with plans to turn the national carrier into delivering profits in 2015, citing improved passenger loads in September.

“Yield at Qantas International has now been positive for six consecutive months as revenue and network initiatives from the transformation program take hold,’’ Joyce said.

“Preliminary figures indicate that the group has made an underlying profit before tax for the first quarter of financial year 2015.’’

Joyce said its Transformation program, coupled with a more “benign operating environment” was delivering “clear results” for the group.

In particular, Joyce highlighted the benefits from the lower Australian dollar which was well hedged for both foreign exchange and fuel risk for the remainder of FY 2015, as well as capacity growth for its international operations for the first half expected to be 2.4%.

“The weaker currency does mean higher Australian dollar fuel prices, but the falling oil price has more than offset the falling currency over the past six months,” Joyce said.

Joyce said domestic industry-wide capacity growth was expected to be around 1% in the first half, “well below the long run average of 3 to 4%”.

“Based on the published schedules we now expect growth to be flat – that is zero market capacity growth for the first half,” Joyce said.

“We have adjusted our own domestic capacity to reflect the current weak demand environment. We will continue to manage our capacity with a careful eye on demand and will always retain the flexibility to ensure our competitive advantages are never jeopardised.’’

By the end of FY15, Joyce said the group will have completed 80% of the 5000 redundancies planned, as well as paid off $1 billion in debt.

“There is a deep resilience within Qantas and a hunger for success,” Joyce said.

“We can never go back to the cost base and inefficient work practices that left us at such a disadvantage against our competitors and put our future at risk.”

“Instead we will forge ahead and establish a new platform for our ongoing success and a sustainable premium airline model for our times.”

Qantas chairman Leigh Clifford told shareholders the underlying loss before tax of $646 for FY14 was a “totally unsatisfactory result” but blamed market growth, fuel costs and “weaker general demand in the domestic market” for both business and leisure travel.

Clifford said the Australian economy was in “transition” and the immediate outlook “somewhat mixed”.

“There is still general cautiousness among consumers that is affecting all sectors of the Australian economy,” he said.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • Cruise

P&O rescues Rotary volunteers after collapse of Air Vanuatu

P&O Cruises Australia has answered a plea for help from a group of young Australian Rotary volunteers, stranded in Vanuatu following the collapse of Air Vanuatu. The students, many of them teenagers from Albury, NSW, were volunteering for a youth project run by the Hive Rotary Club Australia when the airline abruptly cancelled all flights, […]

  • Destinations

Intrepid continues expansions with launch of first DMC in Jordan

Intrepid has increased its presence in the Middle East with the opening of its first destination management company in Jordan. Based in Amman, the local team will operate Intrepid’s range of nine experiential small group tours in Jordan from this summer, with a view to expanding the range for 2025 and beyond. Zina Bencheikh, managing […]

  • Appointments

Minor hotels appoints Puneet Dhawan to key Asia role

Global hotel owner and operator Minor Hotels has appointed Puneet Dhawan as head of Asia as the group plots its growth in Asia and India. From July, Dhawan will be responsible for the performance of all Minor Hotels properties in Asia, working in close collaboration with the Minor Hotels senior leadership team and will report […]

  • Appointments

Abercrombie & Kent and Crystal appoint Evon Ler to director of sales, Asia

Abercrombie & Kent Travel Group have announced that Evon Ler will join them in the new role of director of sales, Asia. She will work closely with Tony Archbold (VP, Sales, APAC, Crystal) and Susan Haberle (VP, Sales & Partnerships, APAC, A&K) with trade support across the region. Ler comes to the A&K family with more […]