Qantas revenue rise offsets higher costs in Q1

Qantas reported a 6.3% rise in revenue to A$4.41b for the quarter ended 30 September, with the record result helping to offset higher fuel and other operating costs. Group RASK for the quarter increased 5.4%, with its domestic operations - including those of budget unit Jetstar - delivering a 6.8% rise in unit revenue on stronger demand across business and leisure markets. International unit revenue rose 4%, which it attributed to structural changes to its network and the refocusing on its Singapore hub. ASKs decreased over the quarter by 0.3%, with capacity cuts taking place across its domestic and international networks. “Our record passenger revenue performance for the first quarter meant that we were able to substantially recover higher fuel prices,” commented CE Alan Joyce in a trading update. “Market demand for travel remains fundamentally strong and we’re seeing some wind-back of competitor capacity growth.” While it did not provide any cost data, it noted that apart from higher fuel costs, the carrier increased commissions paid to travel agents and also had to contend with a weaker Australian dollar.<br/>