The Gold Coast Bulletin

Value dips but domestic results give Qantas a lift

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tre is set to open on September 21, said.

With other developmen­ts a possibilit­y, Mr Rix said having high-speed internet would help attract business.

“Demand for services and facilities is also growing at a rapid rate of knots and infrastruc­ture spending needs to keep pace with this.”

He said the unexpected­ly high rate of growth of Pimpama underscore­s the importance of fast-tracking infrastruc­ture for the area, including transport, education and health. QANTAS shares have dropped to their lowest in more than a month despite Australia’s major carrier posting a record underlying profit of $1.6 billion.

The airline reported fullyear net profit rose 15 per cent to $980 million, helped by strong performanc­es from the domestic flying business of Qantas and Jetstar.

Qantas shares closed 3.35 per cent down to $6.49 yesterday.

Chief executive Alan Joyce said the record profit reflected a strong market as well as the benefits of ongoing work to improve the business and build long-term shareholde­r value, but warned of challenges ahead.

“We’re facing another increase to our fuel bill for 2018/19 and we’re confident that we will substantia­lly recover this through a range of capacity, revenue and cost efficiency measures, in addition to our hedging program,” he said in a statement.

The domestic flying division delivered earnings of $1.1 billion, a 25 per cent jump from the previous year, driven by efficiency gains and higher seat occupancy as the airline boosted offerings such as new lounges and free Wi-Fi, for passengers.

Qantas internatio­nal division increased its earnings by 7 per cent to $399 million.

The company has set aside a further $67 million for up to 27,000 non-executive employees with a bonus of $2500 each.

Qantas said its fuel bill is expected to jump by $690 million to $3.9 billion, while expenditur­e would rise by $250 million.

Qantas said it would return $500 million to shareholde­rs. It declared a fully-franked final dividend of 10¢ per share, up 3¢ from a year earlier, as well as a fresh on-market share buyback of up to $332 million.

 ?? Pictures: RICHARD GOSLING, JAMES TOD ?? Pimpama is booming, with developmen­ts including Halcyon (main) and The Heights (right), as well as Steve Knudsen’s proposed ‘koalafrien­dly’ project (left).
Pictures: RICHARD GOSLING, JAMES TOD Pimpama is booming, with developmen­ts including Halcyon (main) and The Heights (right), as well as Steve Knudsen’s proposed ‘koalafrien­dly’ project (left).

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