Qantas takes off with $3.3b turnaround
Australia’s biggest airline Qantas will return $505 million to its shareholders after a more than $3.3 billion turnaround in its bottom line.
It today posted a net profit of $557 million for the year to June 30, compared to a record $2.8 billion loss a year ago.
Following controversial cost-cutting measures, its underlying pre-tax profit for the year was $975 million, ahead of analysts’ expectations for a $960 million profit.
This has prompted a commitment to begin a fleet overhaul, with Qantas set to buy eight Boeing 787-9 Dreamliners for its international fleet from 2017, subsuming its older 747s.
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The airline has not declared a dividend but will return $505 million to shareholders through a 23 cent per share cash distribution.
The company will also carry out a share consolidation, which it says will have a similar effect to a share buy-back.
It comes as online travel company Webjet lifted its full year underlying earnings, saying alls its businesses are enjoying strong growth.
Webjet reported earnings before interest, tax, depreciation and amortisation rose 19.7 per cent to $27.9 million in the year to June 30, slightly above its previous forecast.
Total transaction values – or the price it sells travel products and services as an agent for airlines – rose 31 per cent to $1.266 billion. Net profit fell nine per cent to $17.5 million from $19.1 million, mainly because of higher tax rates linked to its businesses in Australia and Europe.
