Qantas is rapidly making its way back to those financial glory days, with the announcement of its strongest profit since before the Global Financial Crisis.
Today, the Flying Kangaroo announced an Underlying Profit Before Tax of $975 million – just under the desired $1 billion mark.
Achieved during the 2014/15 financial year, the figure was a turnaround of $1.6 billion compared to the prior 12 months.
All segments of the group reported strong profits over the period including Jetstar, Loyalty and Freight, which achieved record results.
Qantas Domestic and International reported an underlying profit before interest and tax of $600 million – the best result since 2008.
Airline CEO, Alan Joyce, says the positive results were driven by the Qantas Transformation Program, which realised $894 million in transformation benefits over the year.
“We are halfway through the biggest and fastest transformation in our history.”
Alan Joyce, CEO
” Without the transformation, we would not be reporting this strong profit… we have shaped our business for a strong, sustainable future – and because we moved quickly and make tough decisions early, we have strong foundations to build on.”
What will Qantas do with the profits?
Qantas will pay $505 million or the equivalent of 23 cents per share to shareholders early in November this year.
Staff will also benefit, with the airline setting aside $90 million in bonus payments to employees covered by agreements that include an 18-month pay freeze.
“No other company in Australia has people with more pride, more belief and more commitment than those who go to work each day for Qantas.”
Alan Joyce, CEO
The airline has also placed an order for eight Boeing 787-9 aircraft, which will join the International fleet from 2017.
New aircraft will gradually replace five older Boeing 747s, which Joyce says opens the airline up to new opportunities such as new destinations.
“New aircraft types have always unlocked opportunities for Qantas.”
Alan Joyce, CEO
Qantas will also retain 15 further options and 30 purchase rights for additional Boeing 787s.
