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Qantas post second highest performance in 97 years

Staff Writer | August 25, 2017
Qantas reported an underlying profit before tax of $1,401 million and a statutory profit before tax of $1,181 million for the 12 months ended June 30, 2017.
Qantas
Qantas   Underlying profit before tax $1,401 million
The underlying result represents the second highest performance in Qantas’ 97 year history, down 8.6 percent compared with last year’s record.

It is slightly above the guidance range provided in early May this year, mainly due to strengthening of the Group’s domestic businesses.

A drop in statutory profit before tax of $243 million reflects that the FY16 result included the gain on sale from the Sydney Domestic Terminal.

All parts of the Qantas Group delivered strong returns in FY17.

In the domestic market, Qantas and Jetstar combined reached a record $865 million Underlying EBIT, making them again the two most profitable airlines in Australia with around 90 percent of the total domestic profit pool.

Qantas International, which has faced high levels of capacity growth in the broader market, saw an improvement of conditions in the second half; it posted an Underlying EBIT of $327 million.

Continued strength in its core markets helped the Jetstar Group deliver the second highest profit in its 13 years of operation.

Qantas Loyalty booked a record $369 million Underlying EBIT on a 4 percent increase in revenue as it continued to diversify its earnings.

The Group met all the objectives of its financial framework, reporting a 12-month return on invested capital of 20.1 percent.

Another $470 million in transformation benefits were delivered, completing the three year program and outperforming the $2 billion target by $125 million.


 

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