- Qantas full year underlying profit before tax a record $1.6 billion, up 14%.
- 10 cents a share franked dividend plus an on market buyback of up to $332 million.
- Bonuses of a combined $67 million for 27,000 non-executive employees.
Qantas posted a record full year underlying profit before tax of $1.6 billion, up 14%.
That’s 5% higher than the national airline’s last record profit in 2016.
Revenue was up 6.2% to $17.06 billion for the year to June. Statutory profit after tax was 15% higher at $980 million.
“These numbers show a company that’s delivering across the board,” says Chief Executive Officer Alan Joyce.
Shareholders will be rewarded with $500 million in the form of a fully franked 10 cents a share dividend, plus an on market buyback of up to $332 million.
Bonuses worth a combined $67 million will flow to 27,000 non-executive employees. This brings to a total of more than $300 million in bonuses for frontline staff since 2015.
At the close, Qantas shares were down 2.8% to $6.53.
“Our investment in free Wi-Fi and cabin improvements are delivering a better experience for customers as well as higher earnings for Qantas and Jetstar,” says Joyce.
“The overall value for the travelling public remains extremely strong, with domestic sale fares almost 40% lower in real terms than they were fifteen years ago.
“We’re seeing healthy demand across key sectors matched with improving levels of capacity discipline, which is a positive sign for the year ahead.”
Qantas domestic reported underlying EBIT up 19.1% to $768 million, Qantas International was up 6.7% to $399 million and Jetstar up 10.6% to $461 million.
“We’re seeing healthy levels of demand in all parts of the domestic market,” says Joyce.
“It’s fair to say customers have given their stamp of approval to several important changes to International.
“The new Perth–London route is the highest rating service on our network. And the introduction of the 787 on other routes — gradually replacing the 747 to places like San Francisco, New York and Hong Kong — has been very well received.”
Qantas Loyalty posted a record result of $372 million, up 1%.
Qantas faces higher fuel prices. The fuel bill was up by almost $200 million in 2018 and it is expecting it to be $3.92 billion, up another $690 million, in 2019.
“It’s a significant increase but we’re confident we will substantially recover it, particularly given the strength of our forward bookings, our advantages in both the domestic and international markets, and our continued focus on transformation,” he says.
The 2018 Qantas numbers:
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