Merged: QF 2008/2009 profit after tax $123 million

[Wod]

Just announced

About Qantas - Newsroom - Media Releases

Before tax profit

The Qantas Group achieved a Profit Before Tax (PBT) of $181 million for the year ended 30 June 2009, reflecting a profit of $288 million in the first half of the year, offset by a loss of $107 million in the second half.

Also, looking forward

There are signs of an improvement in passenger volumes. In addition, yields have stabilised at the levels experienced in the second half of the 2009 financial year. High levels of volatility in the economic outlook, industry capacity, passenger demand, fuel prices and exchange rates continue. Given the high level of uncertainty it is not possible to provide any profit guidance

So there you sort of have it - things have stopped getting worse.

[dragon man]

The most important thing fot Qantas long haul pilots is that Jetstar is to get 4 to 5 A330s ASAP.

[hotnhigh]

qantas to be completely out of tokyo by end of october.

[Roller Merlin]

Appears that most of the group profit is from JQ. From CEO's Staff Notice today:

"Within these results, Jetstar achieved a record profit before tax (PBT) of AUD$137 million up 18 per cent for the financial year ending 30 June 2009, and an Earnings Before Interest, Tax, Depreciation, Amortisation and Rent (EBITDAR) of AUD$393 million - up 24 per cent"

Dragon Man - Additional A330-200 will not be arriving ASAP. From same staff notice:

"Along with the results today a number of other announcements were made...

A significant investment in additional wide-body capacity to grow the Jetstar long haul business. This includes four-five more A330-200s to be accepted in late 2010 through to early 2012. This will now bring our total A330-200 fleet to 11-12 aircraft. As previously announced we will receive our seventh A330-200 for entry into service in December 2009."

QF Media announcement indicates that these will be on six-year leases, be two class, 303 seats.

RM

[Teal]

Appears that most of the group profit is from JQ

Which just proves that with a little creative accounting you can show any figures you want for any entity (or sub-entity in this case).

[Ka.Boom]

HotNHigh.QF out of Japan?

You know this how?
Tickets still avaliable on the net

[VBPCGUY]

'whoop whoop low terrian pull up whoop whoop low terrian pull up'

[skybed]

forensic accountant needed

to unravel this rather creative piece of corporate spin

Jetstar
Jetstar achieved an underlying EBIT of $107 million, a 4.9 per cent increase on the prior year.

A record PBT result of $137 million*, an 18 per cent increase on the prior year, included a one-off gain of $19 million on the equity gain on the reversal of a prior year investment impairment of Jetstar Asia and a $15 million equity accounted loss.

Passenger revenue increased by $211 million or 14.6 per cent. This was largely driven by the 14.4 per cent increase in capacity arising from the continued expansion of the airline’s international network.

Jetstar’s profit was adversely affected by $20 million in the last quarter, as a result of H1N1 influenza. Even though the Japanese market was significantly affected by the outbreak, Jetstar nevertheless made a profit from this market.

Included in the Jetstar results are the consolidated financials for Jetstar Asia/Valuair (from April to June 2009), equity accounted results for Jetstar Pacific and Jetstar’s Australian and New Zealand based operations. The change in structure of Jetstar Asia and Valuair aligned them more closely with Jetstar Australia.

[vee1-rotate]

Thanks for your input VBGUY...now back to your glamorous bag stacking....

[Pedota]

forensic accountant needed

You may well be right skybed, but unfortunately the full numbers are not posted on the QF web site as yet (that I can see anyway). In the meantime an industry newsletter eTravel Blackboard has reached its own conclusions about the results (my bold/italics)

Cheers


Qantas profit sinks 87%, Jetstar keeps group afloat

eTravel Blackboard - 19th August 2009

Qantas today announced an A$123 million profit after tax, a 87% drop from the record-breaking A$970 million in profits last year, as Jetstar and its frequent flyer program only just managed to pull the mainline brand from the muck.

While the $123 million profit on the back of $14.6 billion in revenue, a drop of only 6.9% when compared to the previous year’s revenue, appears to show the strength of the Qantas brand, a breakdown of figures shows the real picture.

Qantas mainline achieved revenues of $11.7 billion dollars, but in the financial year of 2008/09 made a loss of $77 million. Jetstar on the other hand with a fraction of the revenue, sitting at $1.9 billion, made a profit before tax of $126 million.

A further $310 million in profits before tax can be attributed to the Qantas Frequent Flyer scheme.

“Qantas in this challenging environment is reporting a profit,” said Alan Joyce, Qantas CEO. “It is one of the few airlines in the world reporting a profit.”
“During this year, we showed the power of our two brands.”

While refusing to speculate whether or not the declines have finally bottomed, Mr Joyce did remark that “yields haven’t gotten worse than the second half of last year” but with the amount of volatility in the market a 2009/10 guidance would be impossible to make.

Qantas Group is beginning to see traffic levels staying ahead of capacity reductions, which has helped with Qantas seat load factors. In the last quarter, capacity cuts of 6.9% have seen load factors lift 2.8% to 79.6%.
Troubles compounded

Qantas like many other carriers said that operations in the last financial year were “challenging” with a series of one-off impacts to hit operations including Influenza A(H1N1) and the introduction of the A380 into its fleet.

“The first half of the year was characterised by a generally favourable operating environment and strong demand,” said Mr Joyce in the financial statement.

“During the second half, the environment deteriorated, with domestic and international competitor capacity continuing to grow and demand in key markets softening quickly as the global slowdown hit.

“This was compounded by one-off events during the year,” he adds.
Looking at the impacts individually, Qantas estimates that Influenza A(H1N1), or “swine flu”, in the last quarter alone cost the company $45 million, the introduction of the A380 would have cost $37 million, and an industrial dispute with engineers cost the company $130 million.

New cost-cutting program
At the same time, Qantas outlined a brand new cost-savings program set to target $1.5 billion in permanent savings over three years beginning this current financial year.

Named “Q Future”, the new program will consider further efficiencies in fleet utilisation as well as group operations in the coming years. While Qantas aims to reduce redundancies, Mr Joyce did not deny that more job cuts could be made.

In terms of fleet reconfigurations, in the press briefing Mr Joyce outlined a cabin shuffle for the Boeing B737s and Airbus A380s which would see more Premium Economy seats put in. Exact numbers are expected in the near future.

Of the $1.5 billion in savings, $500 million is expected to be achieved by 2009/10 financial year end.

[fishers.ghost]

Cost Reductions Continue

Sustainable future and now Q Future.Qantas has been cutting $500million out of the busines for the last 10 years.Its surprising that there is anything left to cut.They have definitely cut too far to provide premium service

[Pedota]

They have definitely cut too far to provide premium service

Fishers.Ghost - perhaps the reason is that the demand for premium service has significanly droppped. This is from today's Airline Transport World . . . my bold.

Cheers


IATA: 'Some stabilization' in June demand but premium revenue still sharply down

Wednesday August 19, 2009

IATA said that while June passenger traffic figures indicated "some stabilization in air travel demand," noting that even the fall in premium demand "moderated," premium revenue "was still declining at a rate close to 40% in June."

In a "Premium Travel Monitor" issued yesterday, the organization explained that "the issue now is that this stabilization of passenger numbers is partly being achieved at the expense of much lower yields as airlines seek to boost cash flow by making more cheaper seats available. Revenue from premium travel fell an estimated 33% in Q1 and 41% in Q2."

In terms of traffic, premium travel on international flights declined 21.3% year-over-year in June, improved over May's 23.6% drop. IATA previously reported that June international passenger traffic fell 7.2% overall year-over-year, an improvement on May's 9.3% decrease (ATWOnline, Aug. 3).

Despite the improvement globally in first and business class traffic, the organization noted that "a number of key Asian markets showed some further deterioration during June in spite of early signs of recovering economic growth in a number of economies in the region." Premium travel within the Far East dropped 29% year-over-year for the month.

IATA cautioned that positive economic signs that have begun to emerge around the world do not mean passengers will be returning quickly in large numbers. "Passenger travel usually lags any recovery in industrial production and trade because unemployment and consumer confidence only stabilize once the economic recovery has become strong enough to be seen as sustainable," it said.

It further noted that improvement starting to be seen in economy class demand across the North Atlantic is not being seen in premium demand: "Bankers may be getting bonuses again but the level of financial market activity remains low and that is a key driver for [North Atlantic] business travel."

by Aaron Karp

[Boomerang_Butt]

Nice stab at the engineers there...

If they had focused more on their 'premium product' and less on tizzying up JQ with fancy new toys, maybe it would have been better... i.e. Why the Eff is mainline flying around the 767RR while JQ gets new A330s? Please explain. Why not send the 767s to JQ and keep the 330s in the mainline market (e.g Japan, where they notice this kind of thing)

Oh wait, that would make sense, wouldn't it?

[fishers.ghost]

My Point Pedota

By premium I was not alluding to the pointy end but rather the airline as an entity as in.... Premium Airline as compared to a Low cost Carrier.The service even in the pointy end of a QF aircraft has been less than "premium"for several years.
Someone used the term "Minimum Spend" to maintain service on a premium carrier.Qantas is below "minimum spend" and has been for some time.
Perhaps legacy carrier would have been more appropriate

[surfside6]

Fishers Ghost-Welcome to PPrune

Just a word of advice ---dont get upset by the pedantic petulance displayed by some of the PPrune Posters.If there is another meaning attached to a post other than the one you intended some goose wiil have a go at you.If your grammar or spelling is slightly off like wise some anal retentive will correct you.
Anyway welcome to PPrune where a hide as thick as rhino is required to protect yourself from the thickheads who post here

[fishers.ghost]

Thanks

I'll try to keep that in mind for next time

[Offchocks]

My feelings are that although this is a large drop in profit when compaired to last year, it is not that bad when you consider how airlines in the rest of the world have been performing.

[The Green Goblin]

Why not send the 767s to JQ and keep the 330s in the mainline market

Because they need to give Jetstar every opportunity to look profitable and cover its shortcomings with mainlines purse.

[The Bungeyed Bandit]

"Qantas today announced an A$123 million profit after tax"

"and an industrial dispute with engineers cost the company $130 million"

Does that mean that if engineering management didn't try to bludgeon the ALAEA into submission and come to a reasonable and early settlement on the last EBA that the after tax profit would be more than double?

I'm sick and tired of being sick and tired.

[roamingwolf]

The Qantas Group achieved a Profit Before Tax (PBT) of $181 million for the year ended 30 June 2009

How much would that have changed of Qantas was not sprung for cargo price fixing as well as Darths going away present.
Can you go to the accountant and claim a tax writeoff for paying fines?
I forgot about that bandit,what if they had not had a blue with the ginger beers .That would have been another 130 million reasons not to blame the WFC or swine flu.