Qantas profit rises on domestic growth
Australia’s Qantas Airways, which has a codeshare partnership with Dubai flag carrier Emirates, posted a 17.9 per cent jump in interim net profit for the six months to December 31, citing strong performance from its domestic arm.
Net profit stood at A$607 million ($473m) at the end of December 2017, up from A$515m for the corresponding period in 2016.
“We’re seeing continued capacity discipline in the domestic market, coupled with a product advantage that’s delivering a significant profit share to the group,” said Qantas chief executive Alan Joyce.
“Today’s result comes from investing in areas that provide margin growth and a network strategy that makes sure we have the right aircraft on the right route.”
In August last year, Qantas and Emirates agreed to extend their agreement for another five years.
Last Friday, the two carriers welcomed the Australian Competition and Consumer Commission’s draft proposal to give a green light to the extended partnership, which aims to offer travellers improved schedule choice and increased frequent flyer benefits.
Qantas’ underlying profit before tax, its preferred profit measure that strips out one-time costs, was the highest in the airline’s history at A$976m in the six months to December 31.
Revenue stood at A$8.6bn, up 4.8 per cent year-on-year.
Qantas yesterday also announced a share buyback and outlined plans to create one of the southern hemisphere’s largest pilot academies.
The carrier completed a substantial restructuring in 2016, shedding staff, cutting flights and making other efficiency and cost savings.