A strong turnaround in Qantas’s financial performance has been signalled, with the airline expected to deliver its best first-half results since 2010.
The Australian carrier expects to report an underlying pre-tax profit of between A$300 million and A$350 million for the first six month of its 2015 financial year.
All operating segments of the group are expected to be profitable in the period, Qantas said in a trading update.
The airline group’s transformation plan has delivered A$204 million in savings in the second half of 2014 and is on track to realise a further A$350 million in the first half of the 2015 financial year.
Lower fuel prices will also provide a benefit of A$30 million.
Chief executive Alan Joyce said: “Today we confirm that Qantas is set to report its best first half results since 2010. This demonstrates that the strategy we have outlined to transform our business is working.
“Qantas is 12 months into a three and a half year programme, but these strong early results give us the confidence that we will continue to meet all the targets we have set.
“We are committed to completing the full A$2 billion programme to ensure a sustainable, competitive position for the long term.”
First half financial results are due to be issued on February 26.