Qantas reports record first quarter results despite rising fuel costs

Qantas reports record first quarter results despite rising fuel costs

Qantas has managed to clock up record levels of revenue for the first quarter of FY19, up 6.3 per cent compared to last year.

According to the airline, this strong performance has helped offset a rise in fuel costs as well as higher commissions paid to travel agents on higher revenue and the impact of a weaker Aussie dollar.

Despite limiting 76 per cent of its fuel for FY19 and 39 per cent for FY20, the airline’s fuel cost for the year is expected to sit at $4.09 billion compared with $3.23 billion for FY18.

The airline also announced a multi-million dollar investment in a new First Lounge and expansion of its existing Business lounge at Singapore Changi Airport.

Qantas Group CEO Alan Joyce said a combination of positive market conditions and the Group’s strategic advantages was helping it perform well.

“Our record passenger revenue performance for the first quarter meant that we were able to substantially recover higher fuel prices,” said Joyce.

“Market demand for travel remains fundamentally strong and we’re seeing some wind-back of competitor capacity growth.

“When you look across our portfolio, we have a number of factors that help us manage cyclical headwinds impacting the sector. We have a leading position in the domestic market, structural advantages in our international businesses and diversified earnings from Loyalty.

“We have a strong focus on cost and we’re continuing to invest in aspects of customer experience that deliver a competitive edge and margin benefit.

“The lounge investment we’ve announced in Singapore is a good example of that.

“Based on the value of forward bookings and broader market conditions, we’re confident in our ability to manage higher fuel costs and keep investing, while still delivering strong net free cash flow and long-term shareholder value,” concluded Joyce.

Featured image source: Jesse Marlow via AFR

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]