QF Half Year Profit Announced
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Qantas' results as described in today's Air Line Transport World (Geoffrey Thomas). Interesting that JQ's contributed twice as much to the bottom line (EBIT) than QF ($121m v's $60m) - bold italic below (my emphasis).
Qantas to eliminate most first class service as half-year profit plunges
Friday February 19, 2010
Airline Transport World - Geoffrey Thomas
Qantas yesterday reported a A$58 million ($52.2 million) profit for the half-year ended Dec. 31, down 72% from the A$210 million earned in the year-ago semester, and announced the elimination of first class service to all but two destinations in an effort to lift yield.
The group result would have been a loss but for the contribution of low-cost subsidiary Jetstar Airways, which trebled its earnings, and the frequent-flyer program that doubled earnings. Consolidated revenue slumped 14% to A$6.09 billion while costs declined 15% to A$6.76 billion. Operating profit sank 48% to A$143 million from A$274 million in the first half of fiscal 2008-09.
The Qantas mainline unit posted EBIT of A$60 million, down 63.33% year-over-year, while Jetstar recorded a thumping 181% lift in EBIT to A$121 million. The loyalty program reported EBIT of A$157 million.
Group traffic increased 1.2% to 51.49 billion RPKs against a 2.2% decline in capacity to 62.47 billion ASKs. Load factor improved 2.7 points to 82.4% but yield decreased 14.9% to A10.28 cents. There were some significant differences within those numbers, with Qantas International suffering an 8.9% drop in RPKs to 25.73 billion while Jetstar International experienced a 40.2% leap to 5.53 billion. The group's fleet numbered 237 aircraft at period end, up from 226 the previous year.
Qantas announced that it has committed A$400 million to reconfigure and enhance its A380s and nine 747-400s. It will eliminate first class on all long-haul aircraft except for 12 A380s that will be dedicated to Los Angeles and UK service. Those A380s, however, will be reconfigured with fewer business class and more premium economy and economy seats. From 2012, the remaining eight A380s on order will be delivered in a three-class, 550-seat configuration with no first class. QF will revamp its newest 747-400s, including its six 747-400ERs, in a 359-seat configuration comprising 58 business, 36 premium economy and 265 economy seats.
CEO Alan Joyce told ATWOnline that the outlook remains tough on the international front, with "the UK and US still weak." While declining to provide specifics, he said QF's "international operations are losing money while domestic is making money." He added that "passenger revenue in the second half of this financial year is expected to be higher than the first half as yield continues to improve. Our yield in the month of December had recovered 16.5% from the lows in August." For the full year the company is forecasting an operating profit in the A$300-A$400 million range.
Friday February 19, 2010
Airline Transport World - Geoffrey Thomas
Qantas yesterday reported a A$58 million ($52.2 million) profit for the half-year ended Dec. 31, down 72% from the A$210 million earned in the year-ago semester, and announced the elimination of first class service to all but two destinations in an effort to lift yield.
The group result would have been a loss but for the contribution of low-cost subsidiary Jetstar Airways, which trebled its earnings, and the frequent-flyer program that doubled earnings. Consolidated revenue slumped 14% to A$6.09 billion while costs declined 15% to A$6.76 billion. Operating profit sank 48% to A$143 million from A$274 million in the first half of fiscal 2008-09.
The Qantas mainline unit posted EBIT of A$60 million, down 63.33% year-over-year, while Jetstar recorded a thumping 181% lift in EBIT to A$121 million. The loyalty program reported EBIT of A$157 million.
Group traffic increased 1.2% to 51.49 billion RPKs against a 2.2% decline in capacity to 62.47 billion ASKs. Load factor improved 2.7 points to 82.4% but yield decreased 14.9% to A10.28 cents. There were some significant differences within those numbers, with Qantas International suffering an 8.9% drop in RPKs to 25.73 billion while Jetstar International experienced a 40.2% leap to 5.53 billion. The group's fleet numbered 237 aircraft at period end, up from 226 the previous year.
Qantas announced that it has committed A$400 million to reconfigure and enhance its A380s and nine 747-400s. It will eliminate first class on all long-haul aircraft except for 12 A380s that will be dedicated to Los Angeles and UK service. Those A380s, however, will be reconfigured with fewer business class and more premium economy and economy seats. From 2012, the remaining eight A380s on order will be delivered in a three-class, 550-seat configuration with no first class. QF will revamp its newest 747-400s, including its six 747-400ERs, in a 359-seat configuration comprising 58 business, 36 premium economy and 265 economy seats.
CEO Alan Joyce told ATWOnline that the outlook remains tough on the international front, with "the UK and US still weak." While declining to provide specifics, he said QF's "international operations are losing money while domestic is making money." He added that "passenger revenue in the second half of this financial year is expected to be higher than the first half as yield continues to improve. Our yield in the month of December had recovered 16.5% from the lows in August." For the full year the company is forecasting an operating profit in the A$300-A$400 million range.
Last edited by Pedota; 21st Feb 2010 at 09:29. Reason: Incompetence
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QF spin out
We had a "manager" come into our briefing this morning ( day trip) to give us the "real " version of the profit figures.
.........'straight out of the Mr Geoff Dixon Cook Book- How to keep the masses down !
Oh its bad, oh its really bad, we need to cut back, we need to reduce costs, oh the market is poor, oh we are taking off P/C, geeze we may not make our Q Future targets.
So you can imagine -how we were feeling when the punters rolled in at Left 1.
Ok - the figures weren't great. But surely in the context of the rest of the world airlines ( many of whom are govt backed)-not bad.
So pleeeze......enough of the negative spin
.........'straight out of the Mr Geoff Dixon Cook Book- How to keep the masses down !
Oh its bad, oh its really bad, we need to cut back, we need to reduce costs, oh the market is poor, oh we are taking off P/C, geeze we may not make our Q Future targets.
So you can imagine -how we were feeling when the punters rolled in at Left 1.
Ok - the figures weren't great. But surely in the context of the rest of the world airlines ( many of whom are govt backed)-not bad.
So pleeeze......enough of the negative spin
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The worlds oldest continually operating aviation company
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Originally Posted by ratpoison
Quote:
The worlds oldest continually operating aviation company
Quite a bullsh*t statement there ULTERGRA
The worlds oldest continually operating aviation company
Quite a bullsh*t statement there ULTERGRA
Bit overstated ratpoison. I thought there was a consensus that by most measures QF was second after KLM. Same name, essentially same entity over time.
Whispering "T" Jet
Interesting article in today's Money brief.
I loved this paragraph:
I thought it was the Jetstar pilots who were getting screwed?
I loved this paragraph:
Meanwhile, Barry Jackson, president of the Qantas pilots' association, had just convinced his fellow pilots to slash $8 million off their wages in order to save 67 jobs.
"We ended up getting enough volunteers to offset some of the potential redundancies," he told the SMH. "Just when we'd completed that, the company offers the departing chief executive $10.7 million".
"We ended up getting enough volunteers to offset some of the potential redundancies," he told the SMH. "Just when we'd completed that, the company offers the departing chief executive $10.7 million".
Goodonya...
"Noone took a 'paycut' as such..."
I must have missed something? Given QF's implied message that "if we don't save 8mil we can't promise to avoid redundancies", how does more time at home pay the pilot's mortgage when their income is substantially less?
I must have missed something? Given QF's implied message that "if we don't save 8mil we can't promise to avoid redundancies", how does more time at home pay the pilot's mortgage when their income is substantially less?
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More interesting developments
Keep on eye on JQ Asia. Lots of scurrying happenning behind the scenes within the QF Group.The Auditors have almost finished, but a lot of 'cleaning' is still being done.
New appointments, structures and direction coming very shortly. Even one of the new blood who after just a month of taking over from those those who are still 'confined to barracks' up there has pulled the pin and run away....All very messy.
Probably what is needed are some consultants on a decent retainer, anybody know of any ?
New appointments, structures and direction coming very shortly. Even one of the new blood who after just a month of taking over from those those who are still 'confined to barracks' up there has pulled the pin and run away....All very messy.
Probably what is needed are some consultants on a decent retainer, anybody know of any ?
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How about we bring in da' boys from.....F-TROOP.
Now thats a formidable team of consultants.
They all have had - "Asian experience",can speak the lingo ( ni hao ) and like to eat sweet & sour pork.
Pay them in Vietnamese Dong and grab their passports on arrival- until the "mess" is fixed.
xie xie
Now thats a formidable team of consultants.
They all have had - "Asian experience",can speak the lingo ( ni hao ) and like to eat sweet & sour pork.
Pay them in Vietnamese Dong and grab their passports on arrival- until the "mess" is fixed.
xie xie
Last edited by stubby jumbo; 23rd Feb 2010 at 00:38.
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Jetstar Expects Lower Costs as Demand Boosts Traffic (Update2) - Bloomberg.com
Could someone more business savvy then myself, please explain this one to me. Am I missing something?
When queried by the interviewer on projections. What passenger numbers going forward, the number of seats your (J*) likely to sell?
Buchanan responded. "Ahh, we haven't made any projections on J* numbers."
Wouldn't forward projections be critical for any business, especially if you were planning agressive growth.
Also, nice to hear it straight from the J* CEO that they effectively "pool" with mainline on fuel hedging, cash & treasury functions.
Could someone more business savvy then myself, please explain this one to me. Am I missing something?
When queried by the interviewer on projections. What passenger numbers going forward, the number of seats your (J*) likely to sell?
Buchanan responded. "Ahh, we haven't made any projections on J* numbers."
Wouldn't forward projections be critical for any business, especially if you were planning agressive growth.
Also, nice to hear it straight from the J* CEO that they effectively "pool" with mainline on fuel hedging, cash & treasury functions.
Last edited by Mstr Caution; 20th Mar 2010 at 04:23.
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Looks like a return to 'normal airfares' is still a while off . . . my bold/italics.
March air fares cheapest on record
The Age
Andrew Heasley
March 23, 2010
Savvy air travellers are bagging the cheapest air fares on record, but airlines are quietly pushing up the price of other classes of travel, according to financial analysts.
Based on an examination of air fare data from the Bureau of Infrastructure, Transport and Regional Economics, air fares in March are at a record 17-year low (the entire time records have been kept), and 13.2 per cent lower on average than a year ago, CommSec analysts have found.
When the cost of living is taken into account, real airfares are even cheaper, 15.1 per cent lower than a year ago.
The analysts looked at the bureau's "smoothed" 13-month averages, which takes out distortions caused by seasonal volatility in fares.
"It has never been cheaper to fly – that is, if you are prepared to shop around for the best deals," says CommSec's Chief Economist and author of the analysis, Craig James.
"Aussie consumers are very price conscious at present and are scouring for the best deals. As a result, airlines are being forced to keep fares low in order to fill up their planes."
But full economy and business class fares are another story.
Business class fares have crept up almost 7 per cent from their low in September last year.
"Airlines are no doubt hoping that improved economic times will lead to less price-conscious customers, especially from businesses," Mr James says.
While these airfares are creeping higher, they're still cheaper than they were before the global financial crisis hit.
"Business class fares are around 5 per cent down on late 2008 highs while full economy fares are down 11 per cent from their peaks," Mr James says.
"While companies are moving their staff around the country again for sales meetings and conferences, they remain cost-conscious, preventing airlines from lifting fares too far, too fast."
March air fares cheapest on record
The Age
Andrew Heasley
March 23, 2010
Savvy air travellers are bagging the cheapest air fares on record, but airlines are quietly pushing up the price of other classes of travel, according to financial analysts.
Based on an examination of air fare data from the Bureau of Infrastructure, Transport and Regional Economics, air fares in March are at a record 17-year low (the entire time records have been kept), and 13.2 per cent lower on average than a year ago, CommSec analysts have found.
When the cost of living is taken into account, real airfares are even cheaper, 15.1 per cent lower than a year ago.
The analysts looked at the bureau's "smoothed" 13-month averages, which takes out distortions caused by seasonal volatility in fares.
"It has never been cheaper to fly – that is, if you are prepared to shop around for the best deals," says CommSec's Chief Economist and author of the analysis, Craig James.
"Aussie consumers are very price conscious at present and are scouring for the best deals. As a result, airlines are being forced to keep fares low in order to fill up their planes."
But full economy and business class fares are another story.
Business class fares have crept up almost 7 per cent from their low in September last year.
"Airlines are no doubt hoping that improved economic times will lead to less price-conscious customers, especially from businesses," Mr James says.
While these airfares are creeping higher, they're still cheaper than they were before the global financial crisis hit.
"Business class fares are around 5 per cent down on late 2008 highs while full economy fares are down 11 per cent from their peaks," Mr James says.
"While companies are moving their staff around the country again for sales meetings and conferences, they remain cost-conscious, preventing airlines from lifting fares too far, too fast."
