JUST two years after Qantas sank to its biggest ever loss, the Flying Kangaroo has soared to new heights with a record $1.532 billion pre-tax profit, and $1 billion after tax.
The before tax result is a $557 million improvement on the previous year and represents a turnaround of $4.3 billion since the group’s horror loss of 2013-14.
Shareholders will finally get a return on their investment with a dividend of seven cents a share announced, to be paid on October 12, as well as a $366 million share buyback.
And around 25,000 employees will also be rewarded, with a $3000 bonus for fulltime employees and $2500 for part-timers.
“It’s a performance that delivers dividends for our customers, our shareholders and the employees who’ve worked so hard to make it happen,” said Mr Joyce.
“Qantas Domestic, Qantas International, Jetstar and Qantas Loyalty all had record results and increased their margins.”
Combined earnings across Qantas and Jetstar’s domestic operations reached $820 million, up 30 per cent on last year, and combined international earnings doubled in size to $722 million.
“In total, our transformation program has now unlocked $1.66 billion in permanent cost and revenue benefits,” Mr Joyce said.
“We also continue to benefit from lower global fuel prices with a gain of $664 million secured by the Group’s effective hedging position.”
He mapped out an eventful year ahead for Qantas with plans to roll out free, high-speed Wi-Fi on domestic 737 and A330 aircraft in 2017.
The technology Qantas was using would deliver speeds 10 times faster than that of conventional on board Wi-Fi, Mr Joyce said.
“To help demonstrate the potential, I’m pleased to say that we’re exploring a partnership with Cricket Australia to live stream cricket on board the aircraft involved in our technology trial this summer,” he said.
“A flight from Sydney to Perth should be enough time to catch an entire match of 20/20 which is fitting when you’re flying with the Spirit of Australia.”
The result puts Qantas light years ahead of competitor Virgin Australia, which sank to a $225 million loss after major restructuring.
CEO John Borghetti was confident of returning to profit in 2017.
(culled from www.news.com.au)
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