Quantas Group first-half 2017 results see net profit fall 25% compared to H1 2016

Qantas Group, which includes Qantas Airlines, the Australian flag carrier and its low-cost subsidiary Jetstar, has posted better-than-expected results for the first financial half of 2017 with a A$852m pre-tax profit. This was better than the expected A$800-A$850m provided in October’s guidance, but down 7.5% on the A$921m posted for the same period 2016. Figures for the first financial half 2017, which ended December 31, 2016, showed a net profit of A$515m, down 25% on the first financial half, 2016. Combined domestic airline earnings across Qantas and Jetstar, were A$522m. Putting these figures in perspective, the result is still the third-best first half in the carrier’s history and comes on the back of an exceptional record previous year. The Group met all the objectives of its financial framework, reporting a rolling 12-month return on invested capital of 21.7%. A further A$212m of transformation benefits were unlocked in the half, taking total benefits since 2014 to A$1.9bn. The Group remains on track to reach its goal of A$2.1bn by June 2017. Commenting on the results, Qantas’ CEO Alan Joyce said that Qantas was one of the best performing airline groups in the world. “Our transformation program has built a strong, sustainable business that generates returns throughout the economic cycle,” Mr Joyce said. “Qantas and Jetstar’s domestic operations produced an outstanding result and Qantas Loyalty continued to thrive. It’s a combination that keeps delivering and sets us apart from our competitors.
“The international market is tough because of capacity growth and lower fares, and Qantas International is not immune from those pressures. But the work we’ve done on removing costs and making the business more efficient means Qantas International is outperforming its peers in the region.
“Our focus is to stay disciplined on capacity, keep downward pressure on costs, and introduce game-changing improvements like the Dreamliner and high-speed Wi-Fi.
“This result is a credit to the hard work and dedication of our people, who have helped deliver high levels of customer satisfaction right across Qantas, Jetstar and Loyalty.”
(US$1.00 = A$1.30 at time of publication.)