Sydscott
Topic Author
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Joined: Thu Oct 30, 2003 11:50 am

Qantas - AUD$671m Annual Profit Before Tax

Thu Aug 17, 2006 11:44 am

http://www.tradingroom.com.au/news_r...jsp?page=aap_article.jsp&id=124370

Qantas has today announced it's annual profit for the year ended June 30, 2006.

Highlights are as follows;

- Profit before tax of AUD$671m down 26.6 percent;
- Fuel costs increased by AUD$1.1 billion;
- Restructuring costs of $182 million included in expenses;
- $104 million of Liquidated Damages from Airbus included as income re the A380 delays;
- Yield up 5.8% for the year;
- Capacity up 3.6% for the year;
- Cash on hand AUD$2.9 billion
- AUD$501m of cost savings achieved;
- Establishment of Express Freighters Australia and the consolidation and then separation group Freight enterprises into separate lines;
- Group Revenue for the year up 8.6% to AUD$13.6 billion

Not a bad year really all things considered. The A380 damages claim amount is an interesting one though as is the continued focus on freight operations.

The announcement also confirms order for 4 A330-200's being 2 for Jetstar and 2 for the Qantas Group.

[Edited 2006-08-17 04:45:05]

[Edited 2006-08-17 04:52:41]
 
aussie747
Posts: 1005
Joined: Thu Aug 14, 2003 11:15 pm

RE: Qantas - AUD$671m Annual Profit Before Tax

Thu Aug 17, 2006 12:45 pm

Of interesting note is the 104AUD million dollars as compensation over the A380 delays. I had thought it was less than that, judging by information passed on previous threads.
 
VHVXB
Posts: 5309
Joined: Tue Apr 25, 2006 7:54 pm

RE: Qantas - AUD$671m Annual Profit Before Tax

Thu Aug 17, 2006 1:15 pm

Quoting Sydscott (Thread starter):

Interesting. At the moment Fuel seems to be the biggest factor for QF decreased profits. I think they will increase in the fuel surcharge very soon
 
Sydscott
Topic Author
Posts: 3081
Joined: Thu Oct 30, 2003 11:50 am

RE: Qantas - AUD$671m Annual Profit Before Tax

Thu Aug 17, 2006 1:23 pm

Quoting VHVXB (Reply 2):
At the moment Fuel seems to be the biggest factor for QF decreased profits

Yup. The fuel bill increased from AUD$1.93 billion to AUD$2.8 billion and QF is forecasting a fuel bill for the Y/E June 30, 2007 of AUD$3.9 billion according to their press release. So you can clearly see the effects of the QF hedging program in this cost!!

What will be interesting is where they go with the freight business. There has been alot of speculation about QF becoming more involved as a logistics provider and land freight forwarder along with them leasing freighters to fly freight through Asia. Once they consolidate their freight businesses and then group them along business lines I think it's inevitable we will see Qantas make acquistions to further boost these lines. Their total freight revenue was around AUD$2.5 billion in 2006.
 
VHVXB
Posts: 5309
Joined: Tue Apr 25, 2006 7:54 pm

RE: Qantas - AUD$671m Annual Profit Before Tax

Thu Aug 17, 2006 1:50 pm

Quoting Sydscott (Reply 3):
Once they consolidate their freight businesses and then group them along business lines I think it's inevitable we will see Qantas make acquistions to further boost these lines. Their total freight revenue was around AUD$2.5 billion in 2006.

Well they seem to taken the step of providing freight domestically.

Quote:
QANTAS has stolen a march on rival Virgin Blue with the formation of a dedicated domestic air freight business.

Express Freighters Australia will start operating in October with refurbished B737-300 aircraft that will carry time-sensitive freight such as mail, electrical equipment and computers. Qantas already carries domestic freight in the belly of its passenger aircraft.

Virgin Blue also carries some freight, and Paul Little, managing director of Toll Holdings, the new owner of Virgin Blue, indicated that Virgin's potential as a freight carrier was one of the advantages gained from the takeover of Patrick Corp.

Qantas' chief executive Geoff Dixon said Express Freighters Australia would lease B737-300 aircraft to Australian air Express (AaE) under a 12-year contract. AaE is a Qantas-Australia Post joint venture

http://www.theage.com.au/news/busine...ight/2006/08/16/1155407883478.html