Qantas freight, passenger figures on the up
- Latest News
- Friday, 18 February 2011
Qantas chief executive Alan Joyce said the result built on the Qantas Group’s FY10 performance and showed it had emerged from the Global Financial Crisis in a solid position.
Joyce said the Group now was well-positioned to capitalise on the improving global aviation environment and opportunities in both the premium and leisure sectors.
“Domestic business travel continues to recover and Qantas’ yield premium has been restored to pre-financial crisis levels,” he said.
“While demand on key international routes continues to improve, the international environment remains challenging. We remain committed to improving the performance of Qantas’ international business.”
Qantas has estimated the full-year economic impact to the business of grounding its A380 fleet in November at A$80 million, with A$55 million in the first half and A$25 million forecast for the second half.
This figure does not include the cost of repairs to the damaged aircraft and engines, estimated to be at least A$100 million, which all are covered by insurance or by existing contractual arrangements with engine maker Rolls-Royce.
Joyce said all operating segments of the Qantas Group were profitable for the half-year ended 31 December 2010, delivering significant EBIT growth.
The result of Qantas Freight (Underlying EBIT of A$41 million, up 141 per cent), confirmed the strong recovery of the international air freight market.
Looking ahead Joyce said he sees the general operating environment continuing to improve.
Forward bookings indicate yields (returns on sales) in the second half of FY11 will be higher than the same period in FY10, noting that the first half is typically a stronger revenue period due to seasonal factors.
The Group also expects to increase capacity in the second half of FY11 by 11 per cent compared to the same period in FY10, while maintaining flexibility.
As at 14 February 2011, underlying fuel costs for the second half of FY11 are estimated to increase to around A$2.0 billion due to higher forward market jet fuel prices and an increase in flights and capacity. Fuel surcharges, fare increases and hedging are being used to mitigate the impact of fuel price rises.
However, a number of significant weather events are impacting current trading conditions, including the Queensland floods (estimated to impact second half FY11 Underlying PBT by up to A$55 million) and Cyclone Yasi in North Queensland (estimated to impact second half FY11 Underlying PBT by up to A$15 million)
