Qantas back in profit

Australia's national airline, Qantas International, bounced back to profit by posting a after-tax profit of A$975 million for the year ended June 30 after heavy losses 12 months ago.
In August 2014 the carrier, which has a revenue sharing partnership with Dubai's Emirates airline, posted a record loss of A$2.8 billion, having written down the value of its ageing fleet. The dramatic turnaround confirms the once struggling airline's transformation programme is succeeding.
The transformation program is designed to cut 5,000 jobs and save A$2 billion in costs.
Qantas said its cost cutting program has saved A$894 million over the past year and allowed it to pay down more than a billion dollars in debt.
Posting its strongest profit since before the global financial crisis, the carrier announced a A$505 million capital return to shareholders and a Boeing 787 Dreamliner order to start a new era.
Two years ago, Emirates and Qantas entered into a revenue sharing partnership that saw the Australian carrier end a 17-year relationship with British Airways and move its London-bound stop over from Singapore to Dubai.
For the 12 months to 30 June 2015, Qantas reported  a Statutory Profit Before Tax of A$789 million. The underlying result is a turnaround of A $1.6 billion compared with financial year 2014, including Qantas' best ever second half performance, with all segments of the Qantas Group reporting robust profits and returning their cost of capital.
The driving force behind the result was progress with the Qantas Transformation program, which realised A$894 million in transformation benefits during the year and saw Qantas meet its target of paying down more than A$1 billion in net debt. As a result, Qantas has reached its optimal capital structure - enabling it to resume shareholder returns while continuing to invest in growth and renewal.
Chief executive Alan Joyce said the milestone acquisition of the next-generation Dreamliner for Qantas International marked the scale of Qantas' turnaround and signalled a new phase of renewal and growth.
"We are halfway through the biggest and fastest transformation in our history," Joyce said. "Without that transformation, we would not be reporting this strong profit, recommencing shareholder returns, or announcing our ultra-efficient Dreamliner fleet for Qantas International.
"We have reshaped our business for a strong, sustainable future - and because we moved quickly and made tough decisions early, we have strong foundations to build on."
A capital return of A$505 million, equivalent to 23 cents per share, is proposed to be paid to shareholders in early November 2015. The payment is subject to shareholder approval at the Qantas Annual General Meeting on 23 October 2015 of the capital return and the related share consolidation.
"The financial discipline we have applied means we can reward our shareholders, who have been both patient and supportive throughout our transformation,"  Joyce said. "We're delighted to make this announcement today."
Qantas will acquire eight Boeing 787-9 aircraft, to be delivered from calendar year 2017 and gradually replace five older Boeing 747s. "New aircraft types have always unlocked opportunities for Qantas," Joyce said.
"When our red tail Dreamliners start arriving in two years' time, their incredible range and fuel-efficiency will create new possibilities for our network.
"For customers, the Qantas Dreamliner's improved cabin pressure, larger windows and technology to reduce turbulence will deliver the world's best travel experience."
- issacjohn@khaleejtimes.com