Qantas shareholders’ big windfall

QANTAS will hand over yet more cash to shareholders with another buyback after the carrier lifted first-half profit 18 per cent to $607 million.

Underlying pre-tax profit for the six months to December 31 soared 14.6 per cent to a record $976 million.

The airline said it would again give money to shareholders by buying back up to $378 million of shares over the second half.

The move, which will take the total spent on buybacks since 2016 to more than $1.6 billion, helped Qantas shares climb 5.9 per cent to $5.58.

Chief executive Alan Joyce said Thursday’s result included $181 million of benefits from the long-running transformation program.

This has included hefty redundancies, route changes and aircraft retirements, and that Qantas had a full-year target of $400 million.

“After several years of consistent performance, we now have a lot of momentum behind us,” Mr Joyce said.

Net passenger revenue rose to $7.493 billion from $7.064 billion in the prior corresponding period, while freight revenue jumped to $440 million from $416 million.

Citi analysts said Qantas domestic was a stand out performer with 5.3 per cent revenue growth and a 20.4 per cent lift in underlying earnings before interest and tax.

“Overall, the market should be pleased with another record result,” Citi said.

Picture: HOLLIE ADAMS/THE AUSTRALIAN POSITIVE TREND: Inghams chief executive Mick McMahon said a one-off $3.1 million tax credit had also contributed to the company’s $65.7 million net profit for the six months to December.