Qantas Profit Drops 25% in First half 2016/17

[Ansett]

Qantas profit falls 25pc as competition heats up - ABC News (Australian Broadcasting Corporation)

I am sure there will be a lot more information and breakdown to come.

 

[moa999]

Leave the PE seat to the other threads.

Some other interesting fleet comments
- A330 refurb complete (26 aircraft as planned - which is revisionism - original releases mentioned 28)
- no mention of refurb of EBG/EBL, or adding crew rests to others

- 787s will enable retirement of 5 747s. The two oldest with SkyBed Is will leave by mid-2018 (source Twitter @winglets747)

- Jetstar 320neos delayed by months to FY19 (source Twitter @winglets747)

On profit/ routes
- Almost all new seats added for both QFi and JQi have been to Asia.
- Jetstar Asia (Singapore) and Japan are profitable at EBIT level, Pacific (Vietnam) still losing money

 

[samh004]

Despite the profit drop, I think it sounds worse than it is. After all, it's still a very large profit in a challenging market.

I note they had no problem separating QFi and QFd but Jetstar was reported as a group despite having many entities. Need to have a look a bit further to see the breakdown between QFd mainline and regional too.

 

[moa999]

Part of the drop was they recorded $300m odd from the sale of terminals last comparative period.

They have never broken down the Jetstar divisions, just a few random comments here and there

 

[jb747]

Is the glass half full, or half empty?

 

[Deleted member]

What goes up..... must come down. it was bound to happen eventually

 

[JohnK]

I'll leave the reporting to the experts but from where I'm sitting the news doesn't sound that great.

Fuel cost is still relatively low.

Domestic airfares continuing to increase to levels I have not seen this century.

Degrading customer service by moving call centre overseas and laying off staff.

And Qantas is struggling? What's going to happen when fuel increases again?

 

[Aussie_flyer]

I'll leave the reporting to the experts but from where I'm sitting the news doesn't sound that great.

Fuel cost is still relatively low.

Domestic airfares continuing to increase to levels I have not seen this century.

Degrading customer service by moving call centre overseas and laying off staff.

And Qantas is struggling? What's going to happen when fuel increases again?

Who says they are struggling? Half a billion profit for first half FY?

 

[mannej]

I'll leave the reporting to the experts but from where I'm sitting the news doesn't sound that great.

Fuel cost is still relatively low.

Domestic airfares continuing to increase to levels I have not seen this century.

Degrading customer service by moving call centre overseas and laying off staff.

And Qantas is struggling? What's going to happen when fuel increases again?

Struggling? How's the competition going?

 

[Cool Cat Phil]

Struggling? How's the competition going?

Exactly my thoughts.

A phenomenal effort by the entire, hard working team at Qantas.

Considering the nature of the industry and how many of QF's competitors are feeling the heat, QF produced a very resilient result.

 

[moa999]

Exactly compared to VA domestically and SQ and CX internationally it's a stellar result.

That said to invest in new planes all these airlines do need to earn more

 

[PineappleSkip]

Is the glass half full, or half empty?

The stat suggests the glass is 3/4 full . IMHO a profit is a profit.

Cheers skip

 

[JohnK]

Struggling? How's the competition going?

Not much of a competition is it? Could be a monopoly soon.

 

[ric_melb]

Exactly I think the glass is 3/4 full. It really is an excellent result in the circumstances. Especially when you take out the profit from the sale of terminals in the previous period.
It is a great credit to Alan Joyce and the whole Qantas team.
Alan Joyce couldn't resist saying on ABC today that the Qantas profit was greater than the total of profits for Virgin, Air New Zealand, Singapore Airlines, Etihad, and Cathay, for the same period. In the volatile airline world we all know that could change tomorrow, but right now Qantas have the runs on the board.

 

[clazman]

Great result ... I was a knocker of him previously

 

[mannej]

Not much of a competition is it? Could be a monopoly soon.

It is what it is - game changer has fizzled as of late hasn't it?

Time for new blood at the top?

 

[MEL_Traveller]

A phenomenal effort by the entire, hard working team at Qantas.

By the accountants and penny pinchers. It's bare bones services and amenities these days (cutting chauffeur services, cutting second meals on Asia flights, cutting drinks from international business class lounges, declining food standards, cutting miles and status credit earn, squeezing in more seats, skybed seats with droop not being repaired, delays and downgrades without adequatre compensation, soup or a muffin on a red-eye transcon costing nearly $2000).

 

[JohnK]

It is what it is - game changer has fizzled as of late hasn't it?

Time for new blood at the top?

No rush there. They are quite happy going with the flow.

 

[whatmeworry]

Great result ... I was a knocker of him previously

QF historically, can normally generate a profit when crude oil is at low prices.

 

[eastwest101]

By the accountants and penny pinchers. It's bare bones services and amenities these days (cutting chauffeur services, cutting second meals on Asia flights, cutting drinks from international business class lounges, declining food standards, cutting miles and status credit earn, squeezing in more seats, skybed seats with droop not being repaired, delays and downgrades without adequatre compensation, soup or a muffin on a red-eye transcon costing nearly $2000).

Not forgetting low fuel prices and some massive asset depreciation and other accounting tricks....