Record earnings cap a turbulent year for Qantas
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Record earnings cap a turbulent year for Qantas
Record earnings cap a turbulent year for Qantas
Danny John
August 16, 2007 - 10:40AM
Margaret Jackson said the past year had been an unsettling one for Qantas.
Photo: Andrew de la Rue
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Qantas capped a tumultuous year that included a failed $11b private equity bid for the airline, by declaring today a record pre-tax profit of $1.03 billion.
The result was a vindication of the airline's strategy to expand its international and domestic operations, but also underlined claims by major shareholders that the carrier was undervalued by the takeover bid that collapsed earlier this year.
Net earnings of $720 million was also a record for the company which has announced an on-market buy-back of around 10 per cent of its shares which when completed over the next few months will reduce the equity base by $1 billion.
This is expected to further underpin the share price of the company which up until the latest market turmoil has consistently outperformed the Airline Partners Australia consortium's offer of $5.45 a share.
Shareholders have also been rewarded with a fully franked ordinary dividend of 15 cents per share doubling the full year pay out to 30 cents per share, a rise of 36 per cent on the corresponding period last year.
As announced earlier this week, the profit figure includes a provision for an expected fine by US regulators of $47 million to cover the airlines alleged involvement in a fuel-surcharge price-fixing cartel by its freight division.
Outgoing Qantas chairman Margaret Jackson, who quits later this year after the controversy generated by the APA takeover bid, said the result had significantly improved the company's cash position. This now stood at $3.4 billion which provided enough surplus capital to make the share buyback possible and therefore reward shareholders further.
Qantas chief executive Geoff Dixon said the profit figure, and the underlying strong operating position, had been underpinned by its two airline brand strategy with JetStar replacing the main airline on many routes that have been previously unprofitable.
Following its launch in May 2004 JetStar was now making a pre tax profit of $112 million per annum, this is expected to increase further over the coming year as Qantas outlined further growth in profit for 2007/08 well in excess of today's result.
The airline has decided to grant $1,000 worth of shares and a cash bonus of $1,000 to all of its staff as a reward for their loyalty during a difficult but extremely profitable year.
Ms Jackson said the past year had been an unsettling one for Qantas employees but that the airline had now moved on from the takeover and was now concentrating on future growth.
In early trading, Qantas defied the market malaise to rise 1.7 per cent to $5.37.
Danny John
August 16, 2007 - 10:40AM
Margaret Jackson said the past year had been an unsettling one for Qantas.
Photo: Andrew de la Rue
AdvertisementAdvertisement
Qantas capped a tumultuous year that included a failed $11b private equity bid for the airline, by declaring today a record pre-tax profit of $1.03 billion.
The result was a vindication of the airline's strategy to expand its international and domestic operations, but also underlined claims by major shareholders that the carrier was undervalued by the takeover bid that collapsed earlier this year.
Net earnings of $720 million was also a record for the company which has announced an on-market buy-back of around 10 per cent of its shares which when completed over the next few months will reduce the equity base by $1 billion.
This is expected to further underpin the share price of the company which up until the latest market turmoil has consistently outperformed the Airline Partners Australia consortium's offer of $5.45 a share.
Shareholders have also been rewarded with a fully franked ordinary dividend of 15 cents per share doubling the full year pay out to 30 cents per share, a rise of 36 per cent on the corresponding period last year.
As announced earlier this week, the profit figure includes a provision for an expected fine by US regulators of $47 million to cover the airlines alleged involvement in a fuel-surcharge price-fixing cartel by its freight division.
Outgoing Qantas chairman Margaret Jackson, who quits later this year after the controversy generated by the APA takeover bid, said the result had significantly improved the company's cash position. This now stood at $3.4 billion which provided enough surplus capital to make the share buyback possible and therefore reward shareholders further.
Qantas chief executive Geoff Dixon said the profit figure, and the underlying strong operating position, had been underpinned by its two airline brand strategy with JetStar replacing the main airline on many routes that have been previously unprofitable.
Following its launch in May 2004 JetStar was now making a pre tax profit of $112 million per annum, this is expected to increase further over the coming year as Qantas outlined further growth in profit for 2007/08 well in excess of today's result.
The airline has decided to grant $1,000 worth of shares and a cash bonus of $1,000 to all of its staff as a reward for their loyalty during a difficult but extremely profitable year.
Ms Jackson said the past year had been an unsettling one for Qantas employees but that the airline had now moved on from the takeover and was now concentrating on future growth.
In early trading, Qantas defied the market malaise to rise 1.7 per cent to $5.37.
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Buy back? Or pay off for those people who supported the sale...
Gee! Who wooda thought? A "legacy" airline, in the face of intense international competition from fiendish foriegn government owned airlines that simply drip with taxpayers money, a fuel bill that has increased stratospherically by $500 million last year..............and it still makes a record profit of $720 million?
That Qantas Board of Directors and the Senior Managment Team must be composed of superhuman geniuses to pull this off! What a virtuoso performance! Give all of them an AO!
How could anyone produce such a magnificent result given that the company was for sale as a wreck just a few months ago? Talk about Lazarus with a triple bypass....
This has to be the greatest company revival in the history of the joint stock corporation........
....or is it?
That Qantas Board of Directors and the Senior Managment Team must be composed of superhuman geniuses to pull this off! What a virtuoso performance! Give all of them an AO!
How could anyone produce such a magnificent result given that the company was for sale as a wreck just a few months ago? Talk about Lazarus with a triple bypass....
This has to be the greatest company revival in the history of the joint stock corporation........
....or is it?
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Wow QF lists a record profit and sunfish returns....sunfish heard you missed out on the chairmans job?
Not to worry so did aircraft and the professor
"Talk about Lazarus with a triple bypass...." Funny about that because a lot of others thought exactly the same thing.
Not to worry so did aircraft and the professor
"Talk about Lazarus with a triple bypass...." Funny about that because a lot of others thought exactly the same thing.
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Is there any question this J* profit maybe an example of creating accounting?
As far as the award goes,well..mmmmmmm.
Best Cabin Crew mmmm
As far as the award goes,well..mmmmmmm.
Best Cabin Crew mmmm
Nunc est bibendum
Outgoing Qantas chairman Margaret Jackson...said the result had significantly improved the company's cash position. This now stood at $3.4 billion which provided enough surplus capital to make the share buyback possible and therefore reward shareholders further.
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34.075 mill pax at approx $35 per pax fuel levy = $1.193 billion.
Nice little lurk!!
Nice little lurk!!
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Jetstar International contributed a small profit of $3 million in its first year of operations (excluding start up costs).
! There'd be nothing like honesty to tell it how it is but as we have seen, that is expecting too much of some people. Have Jet* International no start up costs or are they simply too difficult (and frighteningly high) to accurately determine? Let the spin continue.
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28 Million start up cost, but hang on that can't be right Qf paid all those cost didn't they, Oh no that's right the cost was really 100 Million but they didn't want to put that much on the balance sheets
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You know the smartest guts in the room...No not Macquarie bank, Enron!!
The disgusting behaviour resulted in a piece of new legislation that has guys like Dixon worried...
The Sarbane-Oxley Act....
It is intended to disclose acconting practices that are less than honest and protect investors...
In a nutshell it relates to the presentation and availability of financial information.
"Jetstar make $112million"
Not quite sonny it takes a little more to start an airline from scratch and until very recently all information pertaining to transfer costs are conveniently hidden, it is merely an IR exercise, designed to convince people they NEED to be paid less.....
The disgusting behaviour resulted in a piece of new legislation that has guys like Dixon worried...
The Sarbane-Oxley Act....
It is intended to disclose acconting practices that are less than honest and protect investors...
In a nutshell it relates to the presentation and availability of financial information.
"Jetstar make $112million"
Not quite sonny it takes a little more to start an airline from scratch and until very recently all information pertaining to transfer costs are conveniently hidden, it is merely an IR exercise, designed to convince people they NEED to be paid less.....
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QF DRIVE At the end of the day does it matter if QF paid $5 or $50 mil to set up Jetstar
Sunstate,QFLink etc...were not set up by Darth and were in fact up and running when he took over.
It would be interesting to find out the real stand alone costs of J* if QF were not around.Then and only then could you make a argument about J*'s viability and real purpose.
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The fact is that Jetstar is not a stand alone company, it is part of the QF Group. (I saw it written on the side of the A330). It may have its own structure BUT the main decisions are made by the QANTAS Board.
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Aircraft could set something up like this from scratch!
Easy with a bunch of 457 visa holders on AWA's - bowl of rice a day (A teaspoon of soy sauce to go with it can be considered your yearly bonus)
Easy with a bunch of 457 visa holders on AWA's - bowl of rice a day (A teaspoon of soy sauce to go with it can be considered your yearly bonus)