Qantas forecasts improved H1 profit on slower revenue growth

Qantas forecast higher underlying H1 profit Thursday as it cut capacity and raised fares, although expectations of slower revenue growth pushed its shares down as much as 7%. Qantas said it expects to report underlying profit before tax in the range of A$900m to A$950m for the six months to Dec. 31, compared with A$852m recorded a year earlier. Revenue for Q1 ended Sept. 30 rose 5.1% to A$4.19b. “The domestic market is healthy but remains very competitive,” CE Alan Joyce said. “The high rate of revenue growth we’ve seen so far this year is likely to slow when compared with what was a strong second half last year.” Qantas shares dropped at the open after the trading update before recovering some ground to be 4% lower at A$6.14. The carrier’s shares have surged more than 90% so far this year. Domestic revenue per available seat kilometer jumped 8% in the quarter. International revenue rose just 0.2% in the quarter ended Sept. 30, compared with a 6.9% decrease in the year-ago quarter. <br/>