Qantas profit jumps.

[Nigelinoz]

Qantas Airways Ltd has posted a more than four-fold increase in first-half net profit as it recovered from one of the worst downturns in aviation history but did not reinstate an interim dividend as expected.

The airline predicted materially higher 2011 earnings as yields return to pre-financial crisis levels but warned of adverse impacts from high fuel prices, recent floods in Queensland state and a Rolls-Royce engine explosion which forced it to ground its fleet of A380 aircraft last year.

"Qantas remains in discussions with Rolls-Royce in relation to the compensation for the economic loss incurred. No agreement has been reached at this stage," the airline said in a statement.

Net profit for the six months to December 31 was $241 million compared to $58 million a year earlier, Qantas said.

Qantas H1 profit jumps, but misses forecasts | News | Business Spectator

Edited to add: Here's the media release to the ASX.
http://www.asx.com.au/asxpdf/20110217/pdf/41wtspn5fp792h.pdf

 

[Nigelinoz]

Interesting that the aussie business media is reporting the story as "Qantas profit jumps" but the BBC is focussing on the negative.
BBC News - Qantas A380 problems bite into half-year profits
Cheers
N'oz

 

[simongr]

Well the Oz media will spin this that "as a result of drastic cost saving measures at the expense of safety and comfort QF profits have soared".

Not a bad result that a number of people here have claimed is a failing/failed business...

 

[Kendall Roy]

Rumour has it that the 10/11 FY profit will more than double as a result of savings achieved by the reduction of anytime access for WPs :mrgreen:

 

[Nigelinoz]

No News has this-

QANTAS has announced profits of $241 million only a week after it increased fuel surcharges and airfares. The carrier posted a 316 per cent rise in first half profit, but passengers are being asked to pay more.

Read more: Why Qantas' $241m profit won't bring passengers joy | News.com.au
​

Cheers
N'oz

 

[drron]

Rumour has it that the 10/11 FY profit will more than double as a result of savings achieved by the reduction of anytime access for WPs :mrgreen:

Reported that the FF scheme recorded record profits-hence the enhancements.

 

[Keith009]

'Jetstar-ing' of Qantas accelerates under Joyce | Adele Ferguson

Interesting analysis of the profit report. Whilst the Qantas Group as a whole is profitable, this is mainly due to Jetstar and QFF. Qantas international itself is losing money. I dread to see what the 'review' means for the future of Qantas international.

 

[ric_melb]

Thanks, QF009, for posting the link to that article. It was interesting, but I do think some analysts are over anxious to predict a downsizing of the main Qantas airline.
Whilst I am sure Jetstar will continue to expand, Qantas still have a very solid domestic network, and I think internationally have been limited by lack of suitable planes.

If you look at the EBIT figures the earnings were as follows:

Qantas $165 million (but after a negative impact of $55million re A380)
Jetstar $143 million
Frequent Flyer $189 million
Freight $ 41 million.

Not too bad for Qantas.
Of course many may disagree with me.

 

[Nigelinoz]

The way I look at it is with the aviation industry the way it has been over the last year with the volcano,the QF32 incident,joint ventures between airlines,etc any profit is an achievement,of course it could have been better but overall I think it's a fair result and one that Qantas can build on from here.
Could have been worse.
Cheers
N'oz

 

[cove]

I felt bad buying some QAN shares at 2.50 just to see them drop a further 15 cents before the rally today.....A bit of a relief from the continuous slide.

 

[Sprucegoose]

I felt bad buying some QAN shares at 2.50 just to see them drop a further 15 cents before the rally today.....A bit of a relief from the continuous slide.

You never buy aviation shares

 

[tipsy.skipsy]

You never buy aviation shares

Did you mean that you should never buy aviation shares ?

Well I was sailing in the same boat as bought in after the A388 Mishap - @2.61 and @2.51 -- significant quantities , I was beating myself up till the results announcement - I almost chewed my fingers off.

We might see some profit booking tomorrow after the rally but not much of a slide.

Fingers Crossed - CBA holds a "buy" advisory and gives a target of $3.20 Around Dec 2011 - $3.60 Feb 2011. - If the gamble pays off --- I will be off chasing rainbows with SC Run's Written all over them. :mrgreen::mrgreen:

 

[Sprucegoose]

Did you mean that you should never buy aviation shares ?

Well I was sailing in the same boat as bought in after the A388 Mishap - @2.61 and @2.51 -- significant quantities , I was beating myself up till the results announcement - I almost chewed my fingers off.

We might see some profit booking tomorrow after the rally but not much of a slide.

Fingers Crossed - CBA holds a "buy" advisory and gives a target of $3.20 Around Dec 2011 - $3.60 Feb 2011. - If the gamble pays off --- I will be off chasing rainbows with SC Run's Written all over them.
:mrgreen::mrgreen:

Yes.

Goodluck!

 

[cove]

I am confident that I will do better in Qantas and Virgin share trading when I have a Time Machine. I think Rod Taylor had one in a movie and they seem to be in short supply.
Most brokers have a buy on QAN and the idea is to make enough each year to cover off the costs of the credit card fees to run up zillions of points paying taxes and telephone types of things where fees exist.
At that point you can think of travel to anywhere,any time for our favourite price of zero.
VBA is easier to do as the leverage off 40 is easier than 2.40 by 6 times.
Of course you can lose more on a cheapie.

 

[Nigelinoz]

There is a good interview with AJ in the KGB column of Business Spectator today.
KGB: Alan Joyce | Kohler, Gottliebsen & Bartholomeusz | Interview | Business Spectator
Cheers
N'oz