QF tips near record profit

QANTAS Group has forecast its second best full-year underlying profit before tax may be achieved for the 2017 financial year, in the realm of $1.35b-$1.4b ( TD breaking news yesterday).

Last financial year Qantas achieved a $1.53 billion profit.

Group domestic unit revenue rose 4.6% compared to the corresponding period, while “tough conditions” in the int’l market “eased slightly” QF said in its trading update for Q3 FY17.

Qantas International capacity rose 4.8% during the quarter, which included the transition of the Melbourne-Tokyo Narita service switching from Jetstar International to Qantas “to improve brand alignment to customer demand”.

QF ceo Alan Joyce said the Q3 results had “met expectations and laid the ground for another strong full-year result”.

“Our guidance today would make this year’s underlying profit the second best in almost 100 years,” Joyce added.

He confirmed internationally “it’s still tough”, but “because of the work we’ve done to transform Qantas and expand into growth markets, our international businesses are navigating the headwinds better than our competitors”.

MEANWHILE, Qantas today announced it would release its own platinum credit card, offering a bolstered rate of points earn and exclusive travel benefits.

To be powered by Mastercard and issued by Citi, the new card will launch in coming months and comes in response “to the strong consumer demand for points as part of everyday spending”.

Qantas Loyalty ceo Lesley Grant said some 35% of credit card spend in Australia earn Qantas Points, “which shows strong interest in this type of reward but also plenty of room for growth”.

“This is a premium card aimed at people who love earning Qantas Points and who travel enough to want access to special deals on air fares and lounge access,” Grant said.

“Ultimately, it’s about giving customers more choice,” she said.

Further details on the new QF credit card will be made available when applications open before the end of the financial year.