Qantas Group reports record performance for full year 2016

Qantas reported an underlying profit before tax of A$1.53bn for the 12 months ended 30 June 2016. The record performance is a 57% improvement on financial year 2015. Qantas Domestic, Qantas International, the Jetstar Group and Qantas Loyalty all reported record results. Total underlying EBIT in the domestic market – across both Qantas and Jetstar – was a record A$820m up A$191m, and total underlying EBIT in the international division was A$722m, up A$374m. The Qantas Transformation program continues to reshape the Group’s cost base and ability to generate revenue. It has unlocked A$1.66bn in permanent cost and revenue benefits since early 2014, including A$557m in financial year 2016, and is now outperforming, with the Group expecting to realise A$2.1bn in benefits by June 2017. Effective fuel hedging saw the Group secure a A$664m benefit from lower global fuel prices compared with financial year 2015, passing a proportion of these savings through to air fares – which are up to 40 per cent lower than a decade ago in the Australian market. The Group’s financial position improved significantly during the year, with A$2.8bn in operating cash flow used for capital expenditure, shareholder distributions and debt repayments, and excess cash used for refinancing.