Qantas Profit Fall

Australian airline, Qantas (ASX:QAN) have reported a fall in profit which was largely due to a 5.4 percent decline in revenue. A bigger loss was avoided due to a reduction in costs, down 4.3 percent excluding fuel expenses. Pre-tax profit for the year was $377 million, within its guidance of between $300 million and $400 million. "While global trading conditions remained challenging, they continued to improve, and the Qantas Group has delivered a strong result, more than tripling its full year profit year-on-year," Chief Executive Officer Alan Joyce said. "Qantas is one of the few airlines to record successive full-year profits and continues to hold an investment grade credit rating."

Qantas Dividends

Qantas is not distributing a final dividend and did not have an interim dividend earlier in the year. Resumption of dividends will depend on: "The quantum and timing of this will depend on trading results, prevailing market conditions, the maintenance of an investment grade credit rating and the level of capital expenditure commitments."

Qantas Business Segments Performance

• Jetstar’s EBIT: $131 million, up from $107 million in the previous corresponding period.
• Qantas Frequent Flyer EBIT: $328 million, up from $226 million in the previous corresponding period.
• Qantas Freight EBIT: $42 million, up from $7 million in the previous corresponding period.
• The Jetset Travelworld Group EBIT: $14 million, down from $16 million in the previous corresponding period.

Qantas Results

• Underlying Profit Before Tax1 of $377 million
• Revenue of $13.8 billion
• Operating cashflow of $1.3 billion
• Cash balance of $3.7 billion
• Unit costs down 4.3% across the Qantas Group, excluding fuel