Qantas 2016 Half Year results

[moa999]

Underlying PBT $921m
No dividends declared
$500m share buyback

All segments profitable at EBIT level

	December 2015	December 2014
	$m	$m
Qantas Domestic	387	227
Qantas International	270	59
Qantas Freight	38	54
Qantas Loyalty	176	160
Jetstar Group	262	81
Corporate	(83)	(79)
Unallocated/Eliminations	(19)	(2)
Underlying EBIT	1,031	500
Net finance	(110)	(133)
Underlying PBT	921	367

- Statutory Release - http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01714403
- Media release - http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01714407
- Joyce speech - http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01714421

- Investor Pres - http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01714414
- Supplementary - http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01714416


- Wifi announcement - http://www.qantasnewsroom.com.au/me...fast-free-inflight-wi-fi-to-australian-skies/
- Heathrow lounge announcement - http://www.qantasnewsroom.com.au/media-releases/qantas-to-build-new-heathrow-lounge/

 

[Cool Cat Phil]

Great news on the new QF Heathrow Lounge..... Didn't see that one coming.

AUSBT always on the ball:

http://www.ausbt.com.au/qantas-to-open-new-london-heathrow-first-business-class-lounge

 

[moa999]

- New 230 seat flagship lounge in LHR - opening first quarter 2017
- Domestic WiFi from 2017 - link with NBN - claiming you will be able to stream live sporting events

- Only minor aircraft changes in 2nd half - two more B717s, three Q300s to JNZ
- Pilot recruitment program of 170 for the 787-9 by 2019

 

[samh004]

I note in the qantas newsroom story about the new LHR lounge it mentions access covering "First and business, Platinum One, Platinum and Gold". Nothing about Qantas Club though? Seems like a big omission.

 

[Cruiser Elite]

Isn't that the best full year result in Qantas 99 year history?

So by logical extension that would make Alan Joyce the best CEO in Qantas 99 year history would it not - so why all the whining by so many here?

 

[Princess Fiona]

I note in the qantas newsroom story about the new LHR lounge it mentions access covering "First and business, Platinum One, Platinum and Gold". Nothing about Qantas Club though? Seems like a big omission.

An AusBT reader also picked up on that. It does indeed seem a big omission.

 

[Comoman]

Wonder when the fuel surcharges will go

Such as good result for fuel hedging/low cost oil etc.

 

[Mr_Orange]

From the CEO's speech:

Qantas and Jetstar are expanding margins through revenue growth and cost reductions.

AKA, pocketing the difference between the actual fuel cost and the QF fuel surcharge due to plumetting fuel prices. Give me a break.

 

[clazman]

Qantas to open new London Heathrow first, business class lounge - Australian Business Traveller

Like the idea of direct flights to London from Perth...

 

[juddles]

From the CEO's speech:



AKA, pocketing the difference between the actual fuel cost and the QF fuel surcharge due to plumetting fuel prices. Give me a break.

Give me a break.

If they make money, it is because of this sort of windfall, if they lose money, it is because they are incompetent?? How can they ever win??

 

[JessicaTam]

I note in the qantas newsroom story about the new LHR lounge it mentions access covering "First and business, Platinum One, Platinum and Gold". Nothing about Qantas Club though? Seems like a big omission.

Looks like QF was listening. The press release now lists QP members.

 

[Ansett]

Good to see a nice profit and them investing in Wifi and new LHR Lounge. Still anxious to see the lay out for the 787-9

 

[Mr_Orange]

Give me a break.

If they make money, it is because of this sort of windfall, if they lose money, it is because they are incompetent?? How can they ever win??

Yes precisely, it was a lucky windfall, and not due to the competence of the CEO or the board. You seem to be forgetting the press releases informing us of, essentially, fare rises due to the increasing cost of fuel. Now fuel is one third of the price it was 18 months ago, where is the retraction of the fuel surcharge?

Face it, pretty much the only reason QF have made money is because of the reduction in fuel prices!

 

[juddles]

What is your point?

 

[ogs70]

No mention of oneworld access either, and specifically states only J/F from QF-coded flights. Is this going to be a QF only premium lounge?

 

[DavidFlynn]

Great news on the new QF Heathrow Lounge..... Didn't see that one coming.
AUSBT always on the ball:
Qantas to open new London Heathrow first, business class lounge - Australian Business Traveller

Thanks.

QF lounges at NRT and HNL to close though ( although makes sense ).

And that was a dropped ball from our side - remnant from an earlier draft of the article, it's wrong, NRT and HNL to remain open. My bad.

 

[ComeFlyWithMe]

Qantas to open new London Heathrow first, business class lounge - Australian Business Traveller

Like the idea of direct flights to London from Perth...

While this may sound good in theory, I think the commercial realities of a route such as this makes it improbable.

There are a few reasons for this:
1. I don't care how nice the interior of the 787 will be, an 18-hour non-stop journey is not most traveller's idea of a good time, especially if they have 10 abreast in Y.
2. Realistically, now that the mining boom is well and truly over, where are the PER based pax going to come from? And more importantly, where is their cash going to come from?
3. Who on the east coast wants to fly to PER domestically for 3 hours, then get on an 18-hour international service? Even with good connections, the time saving is negligible.
4. Highest CoS will be J, and there may not be PE installed on the aircraft config if it is going to mirror the A330s.

I realise the 787 is not a huge aircraft, but I can't see the comercials stacking up. I'm sorry for those PER based flyers that don't have many QFi options these days, but I really don't think a direct QF PER-LHR service has legs. Happy to be proven wrong.

What I think they may do is run a PER-DXB-New EU port that EK doesn't/can't service, such as FRA. Now that may make commercial sense, and open up a number of destinations for PER based flyers using EK's extensive network from their DXB hub.

 

[jimmylikesitwet]

4. Highest CoS will be J, and there may not be PE installed on the aircraft config if it is going to mirror the A330s.

QF have already stated the 787-9 will be three class including PE.

If Qantas are investing this much in a new lounge I can't believe it will just be for 2 flights a day. Something else must be in the planning stage.

 

[hutch]

Yes precisely, it was a lucky windfall, and not due to the competence of the CEO or the board. You seem to be forgetting the press releases informing us of, essentially, fare rises due to the increasing cost of fuel. Now fuel is one third of the price it was 18 months ago, where is the retraction of the fuel surcharge?

Face it, pretty much the only reason QF have made money is because of the reduction in fuel prices!

Whilst, I agree that airline CEO's tend to blame everyone other than themselves when things go wrong and take all the credit when things go right, I personally think there has been an overall improvement in Qantas over the last few years. It appears like they have regained some 'mojo' which was severely lacking for a long time. I would suggest that leads to a more successful and hence profitable airline. Without doubt, fuel prices have a major role to play in this... but there have been other changes too, which should help QF once market conditions turn south.

 

[ComeFlyWithMe]

QF have already stated the 787-9 will be three class including PE.

If Qantas are investing this much in a new lounge I can't believe it will just be for 2 flights a day. Something else must be in the planning stage.

Thanks for clarifying the PE situation, I hadn't read that but it makes sense.

I think we will be more likely to see another east coast to LHR via Asia on a 787 than a direct PER-LHR.

And considering the profitability of this route, I'd say 2 full A380s daily would more than cover the need for their own lounge.