Major airline revamp, low fuel prices and other business efficiencies have Qantas on track to cut its debt by $1 billion by the end of this financial year.
In the airline’s investor day presentation, it revealed a $2 billion forecast in transformation benefits by 2017 and around $875 million by the end of the current financial year.
The airline expects the increase in profits to be driven by the Qantas International Transformation, which is on track to deliver $800 million in the next two years.
Another key contributor is the plunge in oil prices.
Qantas expects to save of up to $550 million in fuel costs by the end of the current financial year.
The airline forecasts its annual fuel bill to reach around $3.92 billion at current market prices.
However, a worst-case scenario will see the airline spend up to $3.95 billion in fuel – this is still drastically down from the $4.5 billion fuel bill from 2014.
According to the airline, other levers driving momentum include a focus on building customer experience, such as the recent completion of renovations to its Los Angeles Business Lounge.
There’s also ongoing focus on building brand strength through promotional activity such as its ‘feel like home‘ campaign.
Plus the airline said it will continue to look at capacity management and disciplined investment.
Martin Grant recruited to redesign the airline’s pilot uniforms.
Meanwhile, Qantas’ transformation continues, with the announcement last month that it had signed up Australian fashion designer, Martin Grant, to redesign its pilot uniforms.
Grant worked with the airline two years to design the popular new image for the Flying Kangaroo’s cabin crew and ground staff.
As part of the new pilot look, Grant said he’s looking at creating outfits that are not just comfortable, but stylish.
He said feedback from pilots is that they want to retain the traditional image with a modern makeover.
Grant also said females are looking for more feminine lines. Read on
