Over the last few months Qantas has been trying out new things, upgrading parts of the business and returning to old routes.
The carrier has become bolder with its innovation and has invested in areas that could lead to more growth.
One would say the carrier has been feeling free to spend and now the reason for this agile attitude is a little clearer.
According to the Flying Kangaroo’s latest financial report, it made $921 million in underlying profit before tax during first half of the 2015/16 financial year.
That’s right, Qantas made almost $1 billion in six months.
The figure was $554 million more than the figure earned during the same period the prior year and just below the $975 million made during the entire 2014/15 year.
More importantly, it was the most the carrier has ever made during the first-half-year in its entire 95-year history.
Revenue for the period jumped five percent to $8.5 billion, while statutory profit before tax sat at $983 million, up $694 million.
According to the carrier, growth came from all areas of the business, with record underlying profits for Qantas Domestic, the Jetstar Group and Qantas Loyalty.
In the international department, Qantas saw the lower dollar drive more inbound tourism from places such as Tokyo, Singapore, Hong Kong and San Francisco, while smaller aircraft in domestic markets such as Western Australia and intra-Queensland reduced costs and managed capacity.
The Jetstar Group welcomed earnings before interest and tax (EBIT) of $262 million, up from $81 million the same period the prior year. This was driven by profitable operations in Asia, including Jetstar Japan which recorded its first profit since launching in 2012.
While all this looks good on paper and makes the company one of the most valuable airline brands, CEO Alan Joyce said it also reflects a “stronger, leaner, more agile Qantas”.
“I’m extremely proud of our people, who are working hard to transform the Qantas Group and make flying with Qantas and Jetstar better than ever for our customers.”
Alan Joyce, Qantas CEO
With the extra money flowing in, Qantas has announced it will invest in new pilots to prepare for the arrival of its new B787-9 aircraft. Around 170 pilots are expected to join the pilot workforce over the next three years along with extra cabin crew to help meet demand.
There’ll also be extra flights to Asia and New Zealand, a new lounge plus free Wi-Fi on domestic flights. Click here for more information.
