United Kingdom
United States
Asia Pacific
Qantas tips lower profit
Qantas Airways said today that its full year profit for 2005/06 would be at the lower end of analysts’ forecasts.
The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the current range of analyst forecasts was between $670 million and $895 million profit before tax and after restructuring costs.
Mr Dixon said that, at this stage, after restructuring costs of approximately $153 million, the profit before tax would be around $670 million.
“We have advised the market since reporting a 2004/05 profit before tax of $914.3 million (adjusted for Australian equivalents to International Financial Reporting Standards) that we would not achieve the same level of profitability in 2005/06,” Mr Dixon said.
“This position has been reinforced by a $1 billion increase in fuel costs for 2005/06 after hedging, a significant amount of which will not be recovered by surcharges.”
Mr Dixon said Qantas had also decided not to sell its Catering operations, the expected proceeds of which had been included in its 2005/06 forecast.
“The offers we received for our Catering business did not represent good value compared to the benefits we expect to achieve by retaining the business and restructuring it,” he said.
The restructure of Qantas Catering will initially provide improvements in Earnings Before Interest and Tax (EBIT) in excess of $15 million per annum.
Mr Dixon said Qantas was making solid progress towards its target of $3 billion of benefits through Sustainable Future for the five years to June 2008.
“These reforms will lead to an improved cost structure in future years. However, if fuel prices continue at this level, further restructuring will be required,” he said.
Graham Muldoon
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
EU airports bring back 100ml liquid rule
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Co-pilot faints, easyJet flight issues ‘red alert’
Gatwick braces for strike