Qantas link with Emirates pays off

Carrier’s international unit posts first profit since partnering with Dubai airline

Qantas has posted its best half-year result in four years with its international unit making money for the first time in the history of the Emirates partnership.

Australia’s largest airline, known as the flying kangaroo, made a statutory profit after tax of A$206 million (Dh598 million), of which A$203 million is attributable to Qantas, for the six months ending December 31, 2014. A huge improvement on the A$235 million statutory loss it reported a year ago.

The Australian financial year starts July 1 and ends June 30.

All divisions of the business — including Qantas International — made a profit over the period. Qantas International made an underlying profit before tax of A$59 million compared to a A$262 million loss a year earlier.

It is the first time the international unit has made money since the global financial crisis and subsequently the first time in the brief history of the Qantas-Emirates partnership that launched in April 2013.

Qantas chief Alan Joyce said at a web streamed press conference the Emirates partnership “continues to deliver”.

“We’ve seen exceptional customer satisfaction with our Dubai hub and with increased range of destinations we’re now serving through Europe which in turn has given us a significant competitive advantage,” he said.

The international unit’s return to profitability was put down to cost cuts, reduced depreciation of the fleet and an increase in utilisation of its fleet.

Qantas changed the timing of its Melbourne-London via Dubai flight last year so that the Airbus A380 used on the route could also be used on the Sydney-Dallas route.

“The Emirates partnership has significantly strengthened Qantas’ position in the highly competitive Australia-Europe market,” said UK-based John Strickland, Director of JLS Consulting, by email.

“The fact that it has been able to restructure its other long haul operations and push up aircraft utilisation is a function of its ability to reduce aircraft