In true Qantas-style, an annual financial report doesn’t come with just numbers and percentages, it’s delivered with staff bonuses, around two major announcements and at least one new route!
But before we get into the network and fleet changes, let’s take a look at how the Flying Kangaroo did in the 2016/17 financial year.
Over the 12 months, Qantas earned an underlying Profit Before Tax (PBT) of $1,401 million (or $1.4 billion), a figure that isn’t as high as the prior 12 months (8.6 percent down) but still the second highest PBT in the carrier’s 97-year history.
In the domestic market, Qantas and Jetstar reached a new record in underlying earnings before interest and tax (EBIT) of $865 million, making them again the two most profitable airlines in Australia with around 90 per cent of the total domestic profit pool.
Internationally, Qantas posted a underlying EBIT of $327 million, while the Jetstar Group delivered the second highest profit in its 13 year history.
The last 12 months also saw Qantas complete its three-year Transformation Program, which outperformed the $2 billion savings target by $125 million.
As a result of this strong performance, Qantas shareholders will receive a dividend of 7 cents per share on 13 October 2017, while staff (non-executive employees) can expect to be $2,500 riches if you’re full time and $2,000 if you’re part time.
Drinks are on the 25,000 Qantas peeps ranging from pilots to cabin crew, engineers, ground staff and office workers!
Alan Joyce, the airline’s Chief Executive, said all the hard work over the three years of the Transformation Program has paid off by making the Group a strong, profitable and more efficient business.
“We operate in a very competitive environment, so continuous improvement is crucial.”
Alan Joyce, Qantas Group Chief Executive
“Being more efficient is part of our culture and we’re now targeting an average of $400 million in gross benefits a year.”
“We have a plan to keep delivering sustainable returns well into the future.”
Joyce said future plans includes continued investment in customer satisfaction through new-look lounges, upgrades and new aircraft.
This leads us into…
Qantas’ new domestic lounge in Melbourne
Starting November this year, the carrier’s domestic lounges at Melbourne Airport will undergo a 12-month renovation to include more seating and new dining options.
The Woods Bagot designed lounges will reflect Melbourne’s culture and urban environment, while fitting 40 percent more people (350 people) in the Business Lounge and 10 percent more capacity (530 people) in the Qantas Club.
Food will be influenced by Qantas Consulting Chef, Neil Perry, and will include options such as gourmet pizzas and Mexican cantina.
Guests will also find an all-day barista coffee service, a Quench hydration station with a selection of premium non-alcoholic beverages, business facilities including wireless printing and high speed wi-fi, an increased number of device-charging access points and service experience by Accor.
Qantas’ major A380 cabin upgrade
These 12 jumbo jets are going to look pretty schmick once they’ve received their multi-million upgrade.
First thing going are those 30 Economy seats on the upper deck, they’re being ripped out and replaced with six Business Class and 25 Premium Economy seats.
Next, Qantas will change the Business Class Skybeds with its new Business Suites, giving each guest direct aisle access.
In the new Premium Economy, seats will be 10 percent wider than the current model, while the passenger lounge located in front of the aircraft will be redesigned to offer more room for First and Business Class guests.
Other enhancements will see the refurbishment of First Class and updated seats in Economy.
Refurbishment on the dozen planes is expected to be complete by 2020 and will also include little touches such as memory foam mattress and pillow menu in First Class and fast Wi-Fi on its international routes.
Qantas’ direct flights to New York
YAS Qantas, YAS! Take us to Central Park.
Joyce said the airline is investigating direct flights from Australia’s East Coast to the United States’ East Coast.
The flights could be up in the air by 2022 and are currently reliant on Airbus and Boeing to develop next-generation aircraft that can make the non-stop flights possible with a full passenger load.
Qantas expects a Sydney to London flight to take up to 18 hours and seven minutes to complete, which would save travellers around three hours.
The CEO said he’s also looking into direct flights from Sydney to New York, which may take up to 20 hours and 20 minutes and could start as close as 2020.
“We believe advances in technology in the next few years will make Sydney to London direct a possibility and Qantas is well placed to be the airline to do it,” he said.
