Qantas Bounces Back With Stunning Profit
February 26, 2015 10:07 AM
MELBOURNE, Feb 26 (Bernama) -- Australia's Qantas Airlines has flown back into the black with a stunning A$203 million profit in the six months to Dec 31, 2014 from a net loss of A$235 million in the same period of 2013.
The underlying profit before tax was A$367 million, compared to a loss of A$252 million previously, driven by record fuel costs and fierce competition.
The turnaround comes after a cost-cutting programme that saw thousands of jobs axed, aircraft deliveries deferred and growth at Asian offshoot Jetstar, frozen.
Chief executive Alan Joyce said the result showed the group was executing the right plan.
"The decisive factor in our best half-year result for four years was our complete focus on the Qantas transformation programme," he is reported by the Australian Associated Press as telling a media conference.
"It's clear that without the impact of transformation, we would not be announcing a profit today. What sets this transformation apart is that we are reducing costs permanently, and at the same time, delivering Qantas' best ever fleet, product and service.
"We are meeting or exceeding all our targets as we build a sustainable future for Qantas with an emphasis on growing long-term shareholder value," he added.
The result was driven by stronger earnings across all of the airline's divisions, with both domestic and international operations in profit.