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Qantas reports record financial results following restructuring

Image via TK Kurikawa / Shutterstock.com

Qantas has delivered the best financial results in its 95-year history following a major restructuring.The Australian carrier posted record annual profits of A$1.42 billion (£820 million), nearly doubling the previous year’s result.

Qantas domestic, international and Jetsar subsidiaries all reported record results for the 12 months to June 30.

Around 25,000 staff will gain a one-off A$3,000 cash bonus and the airline is to pay its first dividend payment to shareholders for the first time since 2009.

The turnaround from record losses in 2014 has involved cutting capacity, an 18-month pay freeze and reducing staff numbers while the airline benefitted from a slump in oil prices

Chief executive Alan Joyce said: “Transformation has made us a more agile business, created value for our shareholders and given us a platform to invest for the future.

“Qantas is stronger than ever, but we’re also determined to keep changing and adapting so that we can succeed no matter what environment we’re in.”

The airline’s international arm has seen a A$1 billion improvement in earnings since 2014, helped by cost cutting and improved aircraft utilisation. Capacity has also been re-allocated from Pacific and domestic routes to target Asian destinations where business travel and tourism is strengthening.

“This agile approach to growth will continue in financial year 2017, as the group monitors broader economic conditions, while continuing to deepen strategic partnerships with American Airlines, Emirates and China Eastern,” the carrier said.

Qantas will put new Boeing 787 Dreamliner flights on sale before Christmas on the airline’s international network.
 
Joyce said: “Throughout our transformation we’ve invested in the areas that matter most to our customers.

We’ve renewed our aircraft, lounges, technology and the training we provide for our people, who’ve done a phenomenal job to earn record customer satisfaction.

Today’s result means we can build on those investments, with some really exciting projects in the pipeline to make the experience of flying with Qantas even better. Our plans for the Qantas Dreamliner, in particular, will set new standards for the industry.”

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