Qantas counts on competitor retreat after fuel bill drives profit lower

Qantas hopes to capitalise on its international competitors pulling capacity out of Australia for the first time in almost a decade to make up lost ground in the second half of the year after an oil price spike blew a hole in its earnings. The airline's international operations bore the brunt of a A$416m fuel bill hike in the December half, driving that division's earnings down by $134m to $90m. CE Alan Joyce said he was confident the airline would completely recover the higher fuel costs in the second half as oil prices eased, the domestic market remained stable and international competition softened. “We think if oil prices stay where they are this is probably the standard going forward, but irrespective of that we’re coping with what we can control." he said. <br/>