Qan­tas flags lower in­terim earn­ings

The Myanmar Times - - International | Business -

AUS­TRALIAN car­rier Qan­tas flagged a hit to first half earn­ings with fall­ing in­ter­na­tional air­fares off­set­ting a de­cline in fuel prices.

The air­line, which has turned it­self around in re­cent years on the back of ag­gres­sive cost-cut­ting, said it ex­pects un­der­ly­ing profit be­fore tax to be be­tween A$800-850 mil­lion (US$607-645 mil­lion) for the six months end­ing De­cem­ber.

This com­pares to A$921 mil­lion in the same pe­riod a year ago.

Chief ex­ec­u­tive Alan Joyce said the in­terim fore­cast was based on rev­enue fall­ing 3.2 per­cent in the three months to Septem­ber 30 due to in­creased com­pe­ti­tion in the air­line in­dus­try.

“Like most car­ri­ers glob­ally, we are see­ing in­ter­na­tional air­fares be­low where they were 12 months ago,” he said in a trad­ing up­date.

In the year to June 30, Qan­tas posted a record net an­nual profit of A$1.42 bil­lion and an­nounced its first pay­out to share­hold­ers in seven years.It fol­lowed a push to cut some A$2 bil­lion in costs and re­struc­ture the air­line over three years be­gin­ning in early 2014, with thou­sands of jobs axed and dozens of air­craft sold or or­ders de­ferred.

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