Qantas shook off disruption caused by a fire in a Rolls-Royce engine one of its Airbus A380s last November to record a 56% rise in half year profits.
The Australian airline group achieved a pre-tax profit of A$417 million for the half-year to 31 December 31, against A$267 million in the same period in 2009.
“The result was achieved while overcoming significant operational challenges during the period including disruptions to the A380 network from November,” Qantas said.
Chief executive Alan Joyce said the half year performance showed Qantas had emerged from the global financial crisis in a solid position.
But he described the grounding of the A380 fleet in November as a “setback”.
Qantas estimates the full-year impact will total A$80 million, with A$55 million in the first half and A$25 million forecast in the second half.
The figure does not include the cost of repair of the damaged aircraft and engines, estimated to be at least A$100 million, which are covered by insurance or by existing contractual arrangements with Rolls-Royce.
The carrier remains in discussions with Rolls-Royce over a commercial settlement to compensate the airline for the economic loss incurred. No agreement has yet been reached.
“Qantas’ response to this unprecedented event was swift and appropriate,” Joyce said, adding that 98% of international operations were maintained.
“While disruptions were minimised, we regret any inconvenience customers may have experienced at the time,” Joyce added.
He described Qantas as being well positioned to capitalise on the improving global aviation environment and opportunities in both the premium and leisure sectors.
“Domestic business travel continues to recover and Qantas’ yield premium has been restored to pre-financial crisis levels,” he said.
“While demand on key international routes continues to improve, the international environment remains challenging. We remain committed to improving the performance of Qantas’ international business.”
The much delayed Boeing 787 Dreamliner remains “central” to the company’s international strategy but the first aircraft is not expected to be delivered to Qantas until the end of 2012.