- Qantas forecasts full year record underlying profit before tax of between $1.55 billion and $1.60 billion.
- Third quarter revenue was up 7.5% to $4.25 billion compared to 12 months ago.
- The national airline has ordered six additional Dreamliners for Qantas International and accelerated retirement of remaining 747s by the end of 2020.
Qantas Group is forecasting a record full year underlying profit before tax of between $1.55 billion and $1.6 billion.
CEO Alan Joyce says he expects the record result despite a rise in jet fuel costs that all airlines are dealing with.
“Qantas is on track to deliver another record full year result even though we’re facing a $200 million increase in our total fuel bill in FY18,” he says.
“We’re seeing solid results from each of our business units, which is a reflection of broadly positive trading conditions and the work we’ve done to strengthen the Group.”
The last highest result was in 2016 when Qantas posted an underlying profit of $1.53 billion
In early trade today, Qantas shares were up more than 6% to 6.16.
The national airline, in a third quarter update today, affirmed its outlook for capacity, fuel costs, capital expenditure and transformation benefits in the second half of 2018.
Total revenue for the three month period to March was up 7.5% to $4.25 billion.
Domestic revenue was up by 8%, reflecting strong demand across key markets, including continued recovery of the resources sector and gains within the small-to-medium enterprise segment.
Domestic capacity decreased by 1.9%.
International revenue rose by 5.2% with underlying demand growth and higher load factors. International capacity grew by 2.3%.
In late March, several changes to the Qantas International network took effect, including the start of the Perth-London route, the switch from Dubai to Singapore as the hub for Qantas’ second London service and a renewed partnership with Emirates .
The share buyback of up to $378 million announced in February is about 51% complete. Once this latest buyback is finished, Qantas will have bought back an estimated 24% of its stock since October 2015.
The board of directors is considering further capital management initiatives.
Qantas also announced an order for six additional Boeing 787-9s, taking the Dreamliner fleet to 14 by end of calendar year 2020.
The deal will mean the accelerated retirement of Qantas’ last six 747s.
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