The Qantas Group has announced its end of year result for FY19 with a profit of $1.3b – down 16.8% on the previous record financial year.
The Qantas Group has today delivered an underlying profit before tax of $1.3 billion for the financial year 2019.
While the result was down 16.8% on the previous record year, the group which includes Qantas domestic, international and freight, as well as Jetstar Australia and all of its international arms, say it’s a “particularly strong result when you consider some of the headwinds we managed in the year.”
Higher oil prices lifting the fuel bill over $614 million, a lower Australian dollar that cost $154 million and a $92 million non-cash expense on provisions for items including employee leave provisions were all factors the group say impacted the group’s final result.
Amongst the highlights in the final result was a $1,250 staff travel bonus for 25,000 non-executive employees, worth $32 million.
Here’s the breakdown of highlights and the outlook ahead.
What you need to know about FY19
The new Qantas Business lounge in Singapore
- Each key part of the group delivered a strong profit in FY19
- Qantas Group revenue was at record levels
- Qantas Loyalty and Frequent Flyer posted another record profit for the year
- Statutory earnings per share remained at the record level the group achieved last year at 54.6c per share
- Shareholders can expect a return of 13 cents per share fully franked dividend, plus an off-market buyback of up to 79.7 million shares
- A $1,250 staff travel bonus has been handed out for 25,000 non-executive employees, worth $32 million
What’s the FY20 outlook?
- Three direct New York and London to Sydney research flights for Project Sunrise announced with a YES/NO decision made by the end of 2019
- The Qantas Group have hedged 100 per cent of their fuel for the year ensuring they can manage a constant price – the total fuel bill is expected to increase to AU$3.95 billion (up $100 million)
- The groups twelve A380s are being completely refurbished with new seats, a new onboard lounge and new cabin layout. The group says the first A380 is already being worked on and will be in service from September 2019
- A new First lounge and expanded Business lounge in Singapore is opening soon
- Jetstar will take the first of its new A321 NEOs, which have better range and will help open up new destinations
- Frequent Flyer will roll out $25 million worth of improvements to the program – making it a lot easier to get a seat using points at times when customers most want to travel
- The group are working on continued waste reduction targets, including eliminating 100 million single-use plastics per year
- In a few months, Qantas will celebrate its 99th anniversary. And in that same moment, the airline will enter its 100th year of operation
For the full annual report and more financial information on Qantas, click here.
Find out more: www.qantas.com.au