Qantas Group delivers strong returns in full year 2017

Qantas has reported an Underlying Profit Before Tax of A$1,401m and a Statutory Profit Before Tax of A$1,181m for the 12 months ended 30 June 2017. The underlying result represents the second highest performance in Qantas’ 97 year history, down 8.6 per cent compared with last year’s record. It is slightly above the guidance range provided in early May this year, mainly due to strengthening of the Group’s domestic businesses. A drop in statutory profit before tax of US$243m reflects that the FY16 result included the gain on sale from the Sydney Domestic Terminal. All parts of the Qantas Group delivered
In the domestic market, Qantas and Jetstar combined reached a record A$865m Underlying EBIT, making them again the two most profitable airlines in Australia with around 90% of the total domestic profit pool. Qantas International, which has faced high levels of capacity growth in the broader market, saw an improvement of conditions in the second half; it posted an Underlying EBIT of A$327m. Continued strength in its core markets helped the Jetstar Group deliver the second highest profit in its 13 years of operation. Qantas Loyalty booked a record A$369m Underlying EBIT on a 4% increase in revenue as it continued to diversify its earnings. The Group met all the objectives of its financial framework, reporting a 12-month return on invested capital of 20.1%. Another A$470m in transformation benefits were delivered, completing the three year program and outperforming the A$2bn target by A$125m.