QANTAS SHARES SOAR AFTER 7.5PC REVENUE BOOST
THE Qantas board is weighing up returning extra cash to shareholders amid a revenue boost on the back of increased passenger numbers.
The Flying Kangaroo yesterday told shareholders revenue for the three months to March rose 7.5 per cent to $4.25 billion compared with the same period last year.
Increased passenger demand drove domestic revenue up 8 per cent and international revenue was up 5.2 per cent in the quarter, both compared to the prior corresponding period, Qantas said.
The airline has also ordered six new Dreamliner aircraft as it accelerates plans to phase out its fleet of ageing 747 jumbos.
Shares in Qantas soared by close to 8 per cent to hit $6.24 their highest point in six months.
Qantas has added $2 billion to its market capitalisation since the start of the year.
In a statement to shareholders yesterday, Qantas said it was in the process of completing a share buy back announced in February.
On completion, the airline said it would have brought back almost a quarter of its stock since October 2015, adding further capital management could be on the way.
“The board will consider further capital management initiatives in line with the group’s financial framework as part of full-year results in August 2018,” the statement said.
Qantas chief Alan Joyce said the third quarter performance showed the company’s ability to achieve continued earnings growth in the face of rising jet fuel costs and pressures to reinvest.
Mr Joyce said Qantas was on track to post a record fullyear underlying pre-tax profit of $1.55 billion to $1.60 billion.
“Qantas is on track to deliver another record full year result even though we’re facing a $200 million increase in our total fuel bill in financial year 2018,” Mr Joyce said.
“We’re seeing solid results from each of our business units, which is a reflection of broadly positive trading conditions.”