Flying high: bumper Qantas profit despite fee hikes
Australia’s largest airline will return up to $450 million to investors after reporting a rise in interim earnings as it looks for ways to offset higher airport charges.
Qantas’ pre-tax profit in the first half amounted to $1.5 billion, an increase of approximately five percent compared to the previous period.
The net result was relatively flat at $925 million for the six months ended December, with revenue of $12.9 billion rising just over six percent.
The cash infusion will be added to an increased interim dividend for shareholders, totaling $300 million, or 19.8 cents per share (a 20 percent increase).
Qantas group chief executive Vanessa Hudson described the carrier’s first half performance as strong despite cost increases.
“We have seen a sharp increase in some costs, such as airport fees and government fees, which have increased at twice the rate of inflation in the last 12 months,” he said.
“We are offsetting these through conversion where possible and are working across the sector to address what can be done to ensure this does not impact on the ongoing affordability of air travel in this country.”
Qantas and Jetstar domestic businesses continued to post record growth in travel demand, delivering underlying earnings before interest and tax of $1.1 billion.
International and freight earnings fell six percent to $463 million.
Qantas forecasts continued strong travel demand across the business.
Domestic operations are estimated to deliver a 3 percent increase in revenue in the second half, while international operations are expected to increase 1 to 3 percent.
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