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Wednesday 30th of July 2014
Qantas forecasts stronger profit outlook
The national carrier has cast an eye to a brighter future.
Australia’s leading airline today announced it was forecasting a continued increase in profit returns.
The announcement followed the results of loyalty-card income, which netted unexpectedly high numbers, and the resurgent corporate travel market. Qantas has claimed that it could see first half earnings ‘materially stronger’ than was previously thought.
Speaking via conference call the Qantas CEO Alan Joyce said that the airline was experiencing strengthening yields which have suggested the economic recovery is back on track, with the international market rebounding particularly strongly. In the second-half year till the end of the month of June, Qantas recorded net income of AUD$54 million, in comparison to a previous-year loss of AUD$93 million.
The airline’s frequent-flyer program membership rose by 12 per cent in the last six months, which was combined with group wide cost cutting to generate the profit turnaround. However, there was one area of concern, that the budget arm of Qantas, Jetstar, saw a fall in numbers despite discount rivals Tiger Airways and Virgin Blue both showing positive first-half year earnings.
According to financial analysts that oversees AUD$350 at his Sydney office, Will Seddon, from White Funds Management stated that the airline had returned a strong performance during what was a difficult period for travel and business. Seddon added that the strengthening yields and increased demand was a good sign for the future.
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