Qantas is close to paying dividends again

Qantas Airways. Photo: Getty Images

Qantas, which is in the middle of a massive restructure, is on track paying down debt, cutting costs and jobs, and increasing revenue.

The airline said today it is now well placed for the board of directors to consider paying dividends again.

“Extent and timing of shareholder returns dependent on prevailing operating conditions and outlook,” Qantas said in an investor presentation.

The airline’s $1 billion debt reduction is on track this financial year, with 4,000 of a planned 5,000 jobs to be cut this year and $2 billion in costs on track to be cut by financial year 2017.

And Qantas says it has 80% or more of the domestic profit pool, fuel prices are at a five-year low and the 2015 forecast for global passenger growth is the strongest since 2010.

However, Australia domestic demand growth is flat as the economy rebalances with a cooling resources sector.

Qantas shares are up 6% to $3.52.

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