Yahoo Finance Australian carrier Qantas records strong profits
Australian carrier Qantas posted healthy annual net profits Friday backed by a strong domestic market, as it announced a share buyback and flagged plans to offer direct flights to London and New York.
Qantas Airways announced a 17.2 percent slip in annual net profit of Aus$852 million (US$673 million) after record results last year.
The airline's underlying profit before tax, its preferred measure, was the second-highest in its history at Aus$1.4 billion in the year to June 30, matching analysts' forecasts.
The results, which followed a record net profit in the previous financial year, came after the completion of an aggressive three-year restructuring process that saw it slash jobs and reduce its aircraft fleet.
"Three years ago, we started an ambitious turnaround programme to make the Qantas Group strong and profitable," chief executive Alan Joyce said.
"We tackled some difficult structural issues, became a lot more efficient and kept improving customer service. Today's announcements show this plan has well and truly paid off."
Profits were supported by a strong showing in the local market, with the domestic arm of the business reporting a record underlying profit of Aus$645 million, an increase of $67 million from the previous corresponding period.
Its international division slipped by Aus$185 million, but still recorded its second-highest underlying profit at Aus$327 million.
The airline declared a final dividend of 7.0 Aus cents and announced a share buyback of up to Aus$373 million.
It was looking into offering direct flights from Australia's east coast to London and New York by 2022, if manufacturers Airbus and Boeing develop aircraft with "the range to make these non-stop flights possible with a full passenger load".
"From next year we'll be flying direct from Perth to London, which is a huge leap forward," Joyce added.
"We believe advances in technology in the next few years will make Sydney to London direct a possibility and Qantas is well-placed to be the airline to do it."
