QF’s record $1.6b profit

QANTAS has revealed the best financial result of its 98-year history, with its underlying profit before tax up 14% to $1.6 billion in 2017/18 ( TD breaking news).

The result is 5% higher than its previous record of $1.53 billion set in 2015/16, and comes amid strong demand in the domestic arena - though with the looming prospect of higher fuel prices.

Shareholders will reap a windfall of up to $500 million, with the airline to pay a fully franked dividend of 10c per share on 10 Oct and plans for a market buy- back of up to $332 million.

Qantas group ceo Alan Joyce said the record profit reflected a strong market as well as the benefits of ongoing work to improve the business.

“These numbers show a company that’s delivering across the board,” Joyce said.

“We’re seeing healthy demand across key sectors matched with improving levels of capacity discipline,” he said.

Qantas achieved total revenues of more than $17 billion in the year to 30 Jun, an increase of 6% on the previous year.

Its underlying earnings (EBIT) were $1.789 billion, a 12% increase on last year.

Qantas Domestic showed the strongest growth, with record earnings of $768 million, an increase of 19.1%.

Qantas International earnings were up 6.7% to $399 million, with Joyce saying customers had “given their stamp of approval” to new international initiatives including new direct Perth- London services and the revived Singapore hub.

The Jetstar Group also set records, with earnings of $461 million, up 10.6%.

The loyalty business performed well too, with record earnings of $372 million.

As part of its annual results announcement, Qantas revealed it will create a second pilot training academy to help address worldwide crew shortages.

Both facilities will be in regional Australia with locations to be announced in coming weeks.

The first will open next year ( TD 22 Feb) and the second in 2020.