Qantas half year profits slip by 25%

Qantas half year profits slip by 25%

Qantas has unveiled its half year results to December 2016, posting an underlying profit before tax of $852 million, after taking out costs for things like operation restructures and redundancies.

But the profits, which work out to be $515 million after tax, show a dip of 25 per cent, while revenue was down by 3.3 per cent to $8.184 billion.

The fall in statutory profit was put down to the fact that the previous half year’s profit included $201 million from the sale of Qantas’ Sydney Airport terminal.

Meanwhile, Air New Zealand recorded a slide in profits also, down from $457 million to $349 million, and Flight Centre plummeted 36 per cent to $74.4 million net profit. Webjet on the other hand, reported record profits almost four times its previous half year results.

Qantas also claimed net passenger revenue lost $243 million compared to the previous period, landing at just over $7 billion.

In terms of operations, both domestic and international, they too fell, with earnings before tax and interest down $16 million to $371 million for domestic, and down $62 million to $208 million for international.

It comes off the back of a number of innovations from Qantas, including its Facebook Messenger bot, in-flight streaming of Netflix and Spotify, and the airline getting rid of pesky window shutters. This week, Roy Morgan awarded Qantas the title of most satisfying airline in the country.

CEO Alan Joyce was also recently named as one of the most inspiring people in the gay community in Cosmo magazine’s inaugural ‘Pride’ issue, which featured the likes of Kylie Minogue and Ruby Rose.

Qantas unveiled its latest order of Premium Economy seats at this morning’s briefing too.

Despite the dip in profits, Joyce was adamant Qantas is one of the best performing airline groups in the world.

“Our transformation program has built a strong, sustainable business that generates returns throughout the economic cycle,” Joyce said.

“Qantas and Jetstar’s domestic operations produced an outstanding result and Qantas Loyalty continued to thrive. It’s a combination that keeps delivering and sets us apart from our competitors.

But, as Joyce admitted, the “international market is tough”, due to capacity growth and lower fares, which he said Qantas International is not immune to.

“Not surprisingly, [Qantas International’s] profit is down on last year’s record levels.

“But the work we’ve done on removing costs and making the business more efficient means Qantas International is outperforming its peers in the region.

“Our focus is to stay disciplined on capacity, keep downward pressure on costs, and introduce game-changing improvements like the Dreamliner and high-speed Wi-Fi.

“This result is a credit to the hard work and dedication of our people, who have helped deliver high levels of customer satisfaction right across Qantas, Jetstar and Loyalty.”

The Jetstar Group overall reported another strong half year profit, helped by solid domestic performance, while its international operations benefited from growing demand between Australia and destinations like Indonesia and Thailand.

“Starting next financial year, we’ll be targeting an annual average of $400 million in cost and revenue benefits to make sure we have a sustainable business for the long term,” Joyce added.

“Internationally, the market will remain challenging – but we expect the revenue trend we saw in the first half to moderate.

“We’re focused on continuous improvement, driving cost and revenue benefits from new technology and efficient operations, and making sure that we hold and strengthen our competitive position in the market.

“Put it all together, and it’s clear that our strategy to build a balanced and resilient portfolio is on track.”


Email the Travel Weekly team at

    Latest comments
    1. …. I always think capacity is not the culprit that pulls down airlines profit… for me it is the frequency of flight schedules… with the advent of a380 which is said to be fuel efficient and capacity booster, I don’t see any reason why flight frequency should not be minimised… if passengers truly care about the environment then they can always work around flight schedules…

alan joyce dreamliner jetstar qantas sydney airport

Latest News

  • Cruise

Seabourn introduces enhanced groups programs for travel advisors

Leading ultra-luxury cruising and expedition travel company, Seabourne, proudly announces the “Seabourn Enhanced Groups Program” to elevate business prospects for travel advisors. This program introduces a revamped Tour Conductor Credit that offers shipboard credits or bonus commission for bookings. It also eliminates the need for deposits for small group allotments and increases group capacity. “Seabourn […]

  • Cruise

MSC World America to become the ultimate family destination at sea

MSC Cruises’ latest world-class ship is set to redefine family cruising with unprecedented spaces and activities, including ones developed in partnership with the LEGO® group. The cruise line announced that its new flagship will feature seven distinct districts, each bringing together a range of tailored experiences. The ship’s blend of American comfort and European design […]

  • Cruise

Ponant’s latest luxury cruise expeditions for 2024 and 2025

Head out to see the beauty of unique destinations on three bucket-list explorations of Australia with Ponant Cruise’s new luxury expeditions. Known for their luxury cruises, Ponant offers unique and truly exceptional sea voyage aboard sleek and intimately sized cruise yachts. They offer a range of discovery expeditions, and launched new cruises that take guests […]

  • News

Liz Anderson steps down from CATO Board after eight years of leadership

The Council of Australian Tour Operators (CATO) has today announced that Liz Anderson (at right) will be stepping down from the Board on Wednesday June 19, concluding her eight years as a director. “The eight years that Liz served on the CATO board were the most transformative time in the Association’s history,” CATO Chair Dennis […]

  • Attractions

Comedian Josh Thomas road tests swapping day job for Tassie odd jobs

Australians are invited to tap into a 200-million-day annual leave bank* and swap day jobs for one of 10 ‘Odd Jobs’ in Tasmania this off-season including Wombat Walker, Paranormal Investigator, Wine Whisperer and Truffler Snuffler. Tourism Tasmania has today launched Odd Jobs, a tongue-in-cheek campaign designed to encourage Australians to swap their day jobs for […]

  • Aviation
  • News

Christine O’Reilly to replace Peter Hay as chair of Australia Pacific Airports Corporation

Christine O’Reilly has been named as the new chair of Australia Pacific Airports Corporation (APAC) – the owner of Melbourne and Launceston Airports. According to a release, O’Reilly will replace Peter Hay on 1 October, who retires after five years as Chair of APAC. APAC CEO Lorie Argus said O’Reilly’s appointment comes at an exciting […]

  • Tourism

The number one thing you can’t forget if you’re going to Europe & The Olympics

As the Summer Olympics in Paris draws near, travel insurance comparison site Compare the Market is urging travellers to safeguard their European summer sports dreams by getting travel insurance for when the unexpected happens. While France seems like a decently safe country to visit, it’s crucial not to overlook the potential risks that could disrupt a holiday. From bed […]

  • Destinations
  • Partner Content

The Solomon Islands’ is ‘Kulture-plus’

Be grateful that your experience of 'headhunting' is limited to some random dude reaching out to you on LinkedIn.

Partner Content

by Travel Weekly

Travel Weekly
  • Cruise

Cruise Traveller’s new Scottish Highlands cruise tour package

Australian small ship cruising specialist, Cruise Traveller, offers a 20-night land and sea holiday in the UK aboard the Lord of the Glens. The tiny cruise line’s 52-guest boutique vessel, Lord of the Glens, is purpose-built to explore the intricate waterways and lochs of the Scottish Highlands. It boasts a rich, traditional ambience with polished […]

  • Cruise

Celebrity Xcel’s keel-laying ceremony in France, with 2025 inaugural sail planned

Construction has commenced on Celebrity Cruises’ next ship, Celebrity Xcel, with a keel-laying ceremony at the Chantiers de l’Atlantique shipyard in Saint-Nazaire, France. An Edge Series ship, Celebrity Xcel will set sail in autumn 2025, with several new yet-to-be-revealed offerings. At the ceremony, Jason Liberty, president and CEO of Royal Caribbean Group (RCG), the parent […]

  • Destinations
  • Tour Operators

Globus unveils nine new independent tours for 2025

Coach touring brand Globus has unveiled nine new independent tours for 2025, from Bangkok to Bali and Abu Dhabi to Nepal. “With Globus Independent tours, our guests are free to enjoy the many benefits of touring, untethered and unscheduled,” APAC head of marketing, Globus family of brands (GFOB), Chris Fundell said. “Providing hand-picked hotel accommodations, […]

  • Hotels

Mandarin Oriental Hotel Group opens Mandarin Oriental Mayfair

The Mandarin Oriental has opened a second property in London, the Mandarin Oriental Mayfair, in the heart of historic Hanover Square. Designed by internationally renowned Rogers Stirk Harbour and Partners, the hotel is the first new build in Mayfair in over a decade. Bringing a modern architectural approach to one of London’s most storied squares, […]