Qantas delivers $1.03b FY net profit

The airline reported a net annual profit of Aus$1.42 billion (US$1.08 billion) in the year to Jun 30, an 80 per cent increase from the previous corresponding period.

The company also said it will give staff a A$3,000 “record result bonus”.

Qantas Airways is planning to step up its global expansion and reduce its domestic operations after reporting its best financial result in its 95-year history.

All divisions reported record results, with total underlying earnings before interest and tax in the domestic market, for both Qantas and Jetstar, at a record A$820 million, up from A$191 million, and total underlying ebit for the worldwide division of A$722 million, up A$374 million. The result was also boosted by lower fuel prices.

“Transformation has made us a more agile business, created value for our shareholders and given us a platform to invest for the future”, Qantas chief executive Alan Joyce said in a statement.

Westfield Corporation’s half-year profit is up 5.4 per cent to $645 million, Bega Cheese has more than doubled its full-year profit to $28.8 million, discount retailer The Reject Shop’s full-year profits rose 20 per cent to $17.1 million on the back of climbing sales, and Building materials company Boral posted a flat full-year profit of $256 million.

In total, the airline’s transformation program had now “unlocked $1.66bn in permanent cost and revenue benefits”, Joyce said.

Qantas plans to run test broadcasts of cricket matches direct to some flights over the summer 2016-2017 cricket season, as part of the testing for its rollout of free in-flight Internet on all domestic services.

“There are over 200 Qantas aircraft and some complex technical issues to work through, so it’s a big job”, says Joyce.

The technology Qantas was using would deliver speeds 10 times faster than that of conventional on board Wi-Fi, Mr Joyce said.