Over on QREWROOM it has been reported the High AU $ is being trotted out in the list of management excuses.
One crewmember with a long memory posted the following blast from the past authored by Margaret Jackson
27 August 2001
Dear Shareholder, I am writing to inform you of our trading results for the year ended 30 June 2001.
2000/2001 Full Year Results
The year ended 30 June was a challenging year for Qantas, with significant price discounting in the Australian domestic market, a weak Australian dollar, an overall slowing in the Australian and international economies and continued high jet fuel prices.
In this difficult environment, Qantas achieved a profit before tax of $597.1 million, 21.7 per cent lower than last year’s result. Profit after tax was $415.4 million, down 19.7 per cent.
This significant profit was a considerable achievement at a time when the global aviation industry is experiencing unprecedented change and many airlines around the world are reporting losses or small profits.
Dividends
The Directors declared a fully franked final dividend of 9 cents per share, bringing total fully franked dividends for the year to 20 cents per share. The total ordinary dividend was 2 cents lower than last year, however the payout ratio of 60 per cent was maintained.
Revenue
Revenue for the year totalled almost $10.2 billion, a record for Qantas and an increase of $1.1 billion or 11.9 per cent on last year. This growth was driven by a 9.3 per cent increase in flying.
Expenditure
Total expenditure, including interest, rose by 14.9 per cent due mainly to costs associated with capacity increases and higher fuel costs. Total fuel expenditure increased by $466.6 million.
Business Segments
International operations continued to make a strong contribution to Qantas’ performance during the year, with earnings before interest and tax (EBIT) rising 22.4 percent to $458.7 million.
Domestic operations contributed $127.4 million in EBIT, down 53.2 per cent, with two new domestic entrants resulting in significant price discounting and pressure on fares across all routes.
Subsidiary operations – which include the regional airlines, Qantas Holidays and Qantas Flight Catering – contributed $109.7 million to the Group’s EBIT, a reduction of 35.2 percent.
Outlook
Qantas faces a very challenging external environment with slow global and domestic economies, intense domestic competition, continuing weakness of the Australian dollar and high fuel prices.
Global pressures are causing airlines around the world, including Qantas, to restructure so they are in a position to participate successfully in this rapidly changing industry.
Qantas Airways Limited ACN 009 661 901 Qantas Centre 203 Coward Street Mascot New South Wales 2020 Australia Telephone 61 (2) 9691 3635
This year’s performance confirms that Qantas is a disciplined and robust airline, ready to meet the myriad challenges that it must face while maintaining a clear focus on safety and reliability, efficiency, productivity and customer service.
Annual General Meeting
The Qantas Annual General Meeting will be held at the Melbourne Concert Hall, Victorian Arts Centre on Thursday 18 October 2001 at 2pm. As shareholders, each of you will receive advance notification along with details of key items to be considered at the meeting. This information will be mailed to you in mid-September with the Annual Report, which will give you a comprehensive outline of the company’s financial, operational and commercial performance.
I hope this brief outline of the 2000/2001 year has given you further insight into the activities of Qantas in which you, as one of our valued shareholders, play an essential role.
Yours sincerely,
Margaret Jackson Chairman
