Qantas Profit 2016

[log0008]

For those who may be interested

Qantas profit information for those interested

Record underlying profit before tax: $1.53 billion, up 57%
Record statutory profit before tax: $1.42 billion, up 80%
Record results for Qantas Domestic (+20%), Qantas International (+92%) Jetstar Group (+97%) , Qantas Loyalty
Near-doubling of earnings per share: 49c, up 24c
Return on invested capital: 23%, up 6.5 points
Operating cash flow: $2.8 billion, up 38%
Net free cash flow: $1.7 billion
$500m shareholder return: fully-franked 7c per share ordinary dividend and onmarket share buy-back
Additional cash bonus totalling $75 million for 25,000 non-executive employees
Continued investment in aircraft cabins and wi-fi

REWARDING OUR PEOPLE
In recognition of their outstanding contribution, around 25,000 personnel across the Qantas Group will be eligible for a one-off $3,000 Record Result Bonus (on a full-time basis) if they are covered by an EBA that includes the 18-month pay freeze outlined as part of the Qantas Transformation program.
Combined with the bonus announced in July 2015, this now means more than $160 million in cash rewards has been set aside for non-executive employees in the past two years.
The costs of the discretionary payment will be recognised in financial year 2017, outside of underlying earnings.

And on the 787


The first Qantas Dreamliner flights will open for sale before Christmas, on Qantas International’s existing network, with other international destinations for the Dreamliner confirmed shortly afterwards; and
Qantas is working with a team of world-class designers, including Marc Newson, and university sleep experts to design the Dreamliner interiors in Economy, Premium Economy and Business to best-in-class

Also Jetstar Japan saw a full year profit - its first.

http://www.qantasnewsroom.com.au/media-releases/qantas-group-full-year-result-2016/

[Ollie Onion]

All looking good, nice little bonus to spend on something nice!

[Whiskery]

Hear,hear and nice little dividend to buy a new boat!

[engine out]

It's good to see that Qantas international (the perennial loss maker according to Joyce over the years) made more profit than the entire Jetstar group, as did Qantas Domestic. In fact, as usual no mention was made of how much profit Jetstar international made except "strong".

[Half Baked]

Smoke and mirrors, spin etc etc.

I just love the way the media take it all hook, line and sinker.

"A stunning turnaround from a carrier on its knees only 2 years ago blah blah blah"

Utter rubbish!

[Slezy9]

Smoke and mirrors, spin etc etc.

I just love the way the media take it all hook, line and sinker.

"A stunning turnaround from a carrier on its knees only 2 years ago blah blah blah"

Utter rubbish!

Care to elaborate? Seems like a pretty good turnaround to me...

[Half Baked]

The Co was never on its knees.

It's called creative accounting..........

[neville_nobody]

Care to elaborate? Seems like a pretty good turnaround to me...

They just had a huge writedown in one year. So from there on your fleet is fully depreciated so you can make more tax free dollars later on.

I would hazard a guess that BHP did something similar this FY.

[cessnapete]

Some people always moan, making a profit, making loss. We had the same comments over here when Willie Walsh, Joyces mate, turned BA around from £4mil a month loss!! Or perhaps the same creative accounting??

[troppo]

half year results back in Feb said scheduled retirements to 744 fleet were being deferred. I notice a global broker listed 3 QF 744ERs yesterday. No mention of this pending fleet change in yesterday's report?

[Keg]

Throwing out a line to see if there are some nibbles?

[Whiskery]

............hang on Keg. I haven't bought my boat yet!!!!!

[IsDon]

Some people always moan, making a profit, making loss. We had the same comments over here when Willie Walsh, Joyces mate, turned BA around from £4mil a month loss!! Or perhaps the same creative accounting??

They're more than mates, they're related. (But then again, isn't everyone in Ireland?)

Walsh is Joyce's second cousin.

[CurtainTwitcher]

Bloomberg piece (http://www.bloomberg.com/news/articles/2016-08-24/cool-on-a380-rejuvenated-qantas-eyes-more-boeing-dreamliners) which includes a 7 minute interview (unable to embed) discussing fuel hedging and 787 routes:
Rejuvenated Qantas Eyes More Boeing 787 Dreamliners


CEO Joyce says he’d like to order all 45 if they make money
Qantas reports record profit, pays first dividend since 2009


Qantas Airways Ltd. could potentially more than quadruple its fleet of Boeing Co. Dreamliners as long as the first few aircraft generate a profit, Chief Executive Officer Alan Joyce said.

Australia’s largest carrier is due to receive the first of its eight Dreamliners at the end of 2017, and has options and purchase rights to buy another 45 of the long-range, fuel-efficient aircraft.

“I’d like to order all of them if I can make a good return out of them,’’ Joyce said in an interview with Bloomberg Television Wednesday. “This aircraft’s technology is going to change the game for Qantas.’’ The Sydney-based airline’s Jetstar subsidiary already operates 11 787s.

Getting new planes will enable more ultra-long non-stop flights to London and Dallas from Australian cities as Joyce, 50, turns around Qantas -- known locally as the Flying Kangaroo. On Wednesday, the carrier reported record profits and announced its first dividend in seven years, helped by the Irishman’s restructuring moves such as retiring old planes and deferring orders for eight A380 superjumbos from Airbus Group SE.

Four-Month High
Qantas shares jumped as much as 5.3 percent in Sydney to their highest intraday level in more than four months after the carrier reported an 84 percent jump in annual net income. Joyce has reversed losses after cutting thousands of jobs and dropping unprofitable routes as part of a A$2 billion ($1.5 billion) transformation program.

The airline is working on the first destination for its 787 and will announce the route at the end of this year. Options include Melbourne-Dallas, Perth-London and Brisbane-Dallas, Joyce said in the interview. Qantas uses the A380 to fly to Dallas from Sydney, a 16-hour journey that is one of the world’s longest commercial flights.

The Dreamliner will allow Qantas to bypass many of the traditional airline hubs, Joyce said.
Joyce emphasized the importance of making money with the aircraft on an earlier call with reporters.

"We have to demonstrate we can make money out of the eight we have,” he said. “Once we’ve done that, we’ll be comfortable in ordering more."

With Joyce seeking more 787s, the airline’s fractured relationship with the A380 superjumbo doesn’t look like mending. Joyce reiterated in the interview that Qantas doesn’t need the remaining eight A380s on order.

Qantas operates its 12 A380s on routes like Sydney or Melbourne to London via Dubai, and to Hong Kong, Dallas and Los Angeles.

“The 12 we have today actually have a very good use," Joyce said. "They operate at big hub airports with slot restrictions. We see a use for 12. We don’t see a use for more than 12. We don’t see a need for those last eight aircraft."


archived copy (http://archive.is/evwHP)

[ROH111]

I remember being told by a JQ Captain, he had it on absolute authority that: "Jetstar had been offered all 12 QF A380's but JQ has declined the offer...."

[Snakecharma]

And how is the other mob going? Or perhaps we shouldn't ask the difficult question because the contrast would be a touch too stark.

[Capn Bloggs]

turned BA around from £4mil a month loss!!
OMG that's a lot...

[VH-ABC]

Has the little fella finally had his teeth done? Times must be good.

[Snakecharma]

Bloggsy, that is only 48 million quid a year loss, amateur stuff!

Takes real professionals to lose hundreds of millions a year, year on year!

If it wasn't so sad it would be funny!

[Berealgetreal]

The 3 billion dollar question is: How long before the Irishman decides he wants the business class passengers back and starts capacity war mark 2? He might wake up one day and decide he wants 70%.

Reminds me of the board game Monopoly. Once the momentum starts you can't stop it no matter what you do.

Certainly has the cash to do it.

[BNEA320]

The Co was never on its knees.

It's called creative accounting..........
yes average the so called loses & profits over the past few years & not that special. Some of it simply depends on what year you put some charges.

[basmand]

Just wondering, will the Jetconnect workers also get a $3000 bonus?
Interested in that, as my partner is a JC Flight Attendant.

[Beer Baron]

Jetconnect Long Haul Cabin Crew will get the bonus. Not sure if there are other categories of Cabin Crew at JC.

[flitegirl]

There are also Jetconect International Short Haul cabin crew (737) along with Pilots.

[Derfred]

I would like to think their contribution was as effective as all others in the Qantas Group, so I'm sure they will be included. Contractors such as Cobham may miss out. Don't know if it would be NZ$3K or AU$3K converted though. Pure speculation.

[The The]

Only those that signed off on the 18mth pay freeze get the bonus. Short haul mainline cabin crew still have signed off on an EBA with the pay freeze, so they are currently ineligible for this years bonus, they also haven't got last years bonus for the same reason.

[basmand]

My partner is short haul JC cabin crew (the NZ registered 737's) and she said she has the 18 month pay freeze and EBA.
Ah well, keeping my fingers crossed. Either 3k NZD or 3k AUD is a nice bonus.
Would be sad seeing her sister, who is ANZ cabin crew, getting a 2500 NZD bonus and my partner not getting anything.
Hopefully they can give her an answer today or tomorrow.

[Ollie Onion]

She will get it, the Jetstar NZ crew are getting it so I am sure Jconnect will be the same.

[XPT]

My partner is short haul JC cabin crew (the NZ registered 737's) and she said she has the 18 month pay freeze and EBA.
Ah well, keeping my fingers crossed. Either 3k NZD or 3k AUD is a nice bonus.
Would be sad seeing her sister, who is ANZ cabin crew, getting a 2500 NZD bonus and my partner not getting anything.
Hopefully they can give her an answer today or tomorrow.
the current official exchange rate is AUD$1=NZD$1.04, but try getting that at any dodgy OZ bank. You'd be lucky to get par. Even with a credit card purchase.

[B772]

QF shareholders are still feeling the pinch.
Total return over the past 12 months +3.6%. (Debt/Equity ratio 149.4%)

Virgin shareholders are feeling the pain.
Total return over the past 12 months -47.3% (Debt/Equity ratio 329.1%)

Alliance shareholders are rejoicing (no pun intended)
Total return over the past 12 months +74.0% (Debt/Equity ratio 62.9%)

REX shareholders are crying.
Total return over the past 12 months -16.8% (Debt/Equity ratio 16.3%)

[basmand]

I can hereby confirm that JC crew also got a bonus. My partner received her bonus last night.