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Qantas reports record profit
Qantas has recorded a profit before tax of $1,032 million for the year ended 30 June – a 53.8% increase on the same period in 2006.
Chief executive officer, Geoff Dixon, said the result was largely down to the airline’s new two-brand strategy following the creation of Jetstar in May 2004.
“We believe the transfer of 15% of marginal domestic and trans-Tasman flying from Qantas to Jetstar, the transfer of Qantas capacity to better performing domestic routes and increased investment in the Qantas product has improved the group’s bottom line over the past three years by $250 million profit before tax (PBT),” he said.
“For example, Jetstar has realised a PBT of $112 million in 2006/07 from routes that in 2003/04 Qantas either lost money on or realised a very small profit.
“Similarly, Qantas’ PBT on the routes to which it transferred its capacity improved significantly.”
He pointed to growing competition from state-owned Middle East hub carriers which are increasing their Australian capacity, new low-cost entrants like Tiger Airways and Air Asia X, and Virgin Blue starting trans-Pacific services in 2008.
Dixon also said that following the settlements reached recently by British Airways and Korean Airlines with the US Department of Justice regarding surcharge investigations, Qantas had put by US$40 million for a potential settlement.
He said the airline was continuing to cooperate with regulators in other countries concerning similar investigations and this could could extend for several years.
By Bev Fearis
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Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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