Qantas Shares surged 14% today after the airline announced it will hit profit of between $300 million and $350 million in the six months to the end of December.
The strong turnaround is being driven by rapid progress of a $2 billion restructuring program including a loss of 5,000 jobs. Qantas says all targets have been either met or exceeded.
The airline is on track to realise at least $350 million in further benefits in the first half of this financial year.
The lower Australian dollar against the US is expected to bring a benefit of $30 million in the first half from cheaper aviation fuel.
The airline booked a record $2.8 billion statutory loss in the 2014 financial year.
Qantas CEO Alan Joyce says Qantas is experiencing a more stable operating environment.
“Today we confirm that Qantas is set to report its best first half result since 2010,” he said.
“This demonstrates that the strategy we have outlined to transform our business is working.”
The first half of 2015 will be a $550 million improvement compared with the first half last year.
Qantas shares were up more than 14% to $2.41 in early trade today. The airline’s shares have gained more than 87% since mid October.
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