Qantas says it expects earnings to fall
Australian carrier Qantas flagged Monday a hit to H1 earnings with falling international airfares offsetting a decline in fuel prices. The airline, which has turned itself around in recent years on the back of aggressive cost-cutting, said it expects underlying profit before tax to be A$800m-850m for the six months ending December 31. This compares to A$921m the same period a year ago. CE Alan Joyce said the interim forecast was based on revenue falling 3.2% in the three months to September 30 due to increased competition on international routes. “Like most carriers globally, we are seeing international airfares below where they were 12 months ago,” he said in a trading update. “But the impact of that is tempered by the competitive advantages we’ve been working hard to fortify including our strong domestic position and diversified loyalty business. “We remain disciplined on cost, continue to manage capacity carefully to match demand, and have secured the benefit of lower fuel prices through our hedging.” In the year to June 30, Qantas posted a record net annual profit of A$1.42b and announced its first payout to shareholders in seven years.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-10-31/oneworld/qantas-says-it-expects-earnings-to-fall
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Qantas says it expects earnings to fall
Australian carrier Qantas flagged Monday a hit to H1 earnings with falling international airfares offsetting a decline in fuel prices. The airline, which has turned itself around in recent years on the back of aggressive cost-cutting, said it expects underlying profit before tax to be A$800m-850m for the six months ending December 31. This compares to A$921m the same period a year ago. CE Alan Joyce said the interim forecast was based on revenue falling 3.2% in the three months to September 30 due to increased competition on international routes. “Like most carriers globally, we are seeing international airfares below where they were 12 months ago,” he said in a trading update. “But the impact of that is tempered by the competitive advantages we’ve been working hard to fortify including our strong domestic position and diversified loyalty business. “We remain disciplined on cost, continue to manage capacity carefully to match demand, and have secured the benefit of lower fuel prices through our hedging.” In the year to June 30, Qantas posted a record net annual profit of A$1.42b and announced its first payout to shareholders in seven years.<br/>
