QF Preliminary Results FY17/18

[Brettmcg]

• Underlying Profit Before Tax: $1.6 billion (up 14%)
• Statutory Profit Before Tax: $1.4 billion (up 18%)
• Statutory Earnings Per Share: 56c (up 21%)
• Return On Invested Capital: 22%
• Net free cash flow: $1,442 million (up 10%)
• Shareholder return of up to $500 million: 10 cents per share ordinary franked dividend, plus an on-market buyback of up to $332 million
• Bonus for 27,000 non-executive employees, worth a total of $67 million
• Extension of global lounge improvement program –– six additional ports to be upgraded
• Commitment to create a second pilot academy facility in regional Australia.

Qantas has today announced an extension of its global lounge upgrade program, designed to support demand for premium travel across six additional ports. They are:

• Updated and expanded Sydney International First Lounge
• Major upgrade to the Auckland Lounge
• Refreshed Tokyo Narita Lounge
• Expanded Brisbane International Lounge
• Two regional lounge upgrades – Tamworth and Hobart.

 

[GoldCanyon340]

Updated and expanded SYD F? Very interesting. Separate section for F and/or CL/P1?

 

[GoldCanyon340]

No announcement about the Singapore lounge.

 

[Brettmcg]

Updated and expanded SYD F? Very interesting. Separate section for F and/or CL/P1?

• Sydney – The flagship Sydney International First lounge will be refreshed and expanded by 15 per cent.
• Auckland – The First and Business Lounges in Auckland will be redesigned into a single lounge based on the format of Qantas’ international lounges in London and Hong Kong. Regional inspiration from New Zealand will be incorporated throughout.
• Tokyo – The Narita lounge will be refreshed with a new design and improved dining options.
• Brisbane – The Brisbane International Lounge will be expanded to cater for an additional 100 guests and completed in early 2019.
• Hobart and Tamworth – Both lounges will be completely redesigned with more space and seating.

 

[Silvia]

Interesting, definitely Auckland is very overdue!
But yes, where is the expansion of Singapore? and don't get me started on the Melbourne international J lounge.
Wasn't Sydney J lounge also on the cards? Both domestic and international look very subpar for a main departure city.

 

[serfty]

Auckland – The First and Business Lounges in Auckland will be redesigned into a single lounge based on the format of Qantas’ international lounges in London and Hong Kong. Regional inspiration from New Zealand will be incorporated throughout.

 

[RooFlyer]

Hobart lounge upgrade - tvery welcome, and needed, but this will be dependent on Hobart Airport getting its act together.

HBA owners had to abandon a new 'Master Plan' this year, as growth outstripped it within 2 years IIRC (plonkers). They are now working on a new one which involves reconstruction at the end of the terminal where the QF lounge is. I'd be surprised if Qantas could push back the walls of the lounge before the new master plan is signed off, which isn't expected anytime soon.

22% return on capital is pretty good. Maybe they can stop squeezing the lemon so hard now.

 

[sudoer]

Tokyo – The Narita lounge will be refreshed with a new design and improved dining options

I find it strange they're prioritising this over Singapore. JAL is always going to have a nicer lounge at Narita, so the only real beneficiaries of this are QC members flying to BNE/MEL (SYD flights are ex HND)

EDIT: JQ use NRT T3 and lounge is in T2.

 

[GoldCanyon340]

Yep. I hope they hand out earplugs at reception in the new AKL lounge.

 

[Limewood]

Now they're making so much profit one might be able to find more J award seats to from international ports!

 

[Bundy Bear]

Now they're making so much profit one might be able to find more J award seats to from international ports!

Where is the yeah sure smiley, maybe one of these will have to do.

 

[chrispy3276]

E-mail that has just gone out:

Dear [name],
Today we announced our 2018 full year financial results. Your ongoing support of Qantas has played an important role in our success.

More luxury, more lounges for our frequent flyers

We’re also delighted to let you know that we’re upgrading six of our lounges. We’re dedicated to ensuring our members and their guests enjoy a premium travel experience with more space and added dining options*.

Here’s what you can look forward to:

• Sydney – We’re refreshing and expanding our flagship Sydney International First Lounge. Plus, we’re also building a new Sydney International Business Lounge with 35% more seating.
• Auckland - The First and Business Lounges in Auckland will be redesigned as one lounge. This is based on the format of Qantas’ International lounges in London and Hong Kong. Regional inspiration from New Zealand will feature throughout.
• Tokyo - The Narita Lounge will be refreshed with a new design and improved dining options.
• Brisbane - The Brisbane International Lounge will be expanded to cater for an additional 100 guests. We aim to complete this in early 2019.
• Hobart and Tamworth – Both lounges will be completely redesigned with more space and seating.
• Melbourne - The redevelopment and expansion of the Melbourne Qantas Club and Domestic Business Lounge is already underway. The first phase of the redesigned Melbourne Domestic Business Lounge opens tomorrow and both lounges will be completed by November this year.

Once again, thank you for your continued support. We hope to see you on board or in one of our lounges soon.

Media release (including fact sheets): QANTAS ANNOUNCES MAJOR LOUNGE INVESTMENT PROGRAM

 

[calmelb]

I’m curious as to why melbourne’s F lounge isn’t getting refreshed. Maybe it’s the end of there being a first lounge except in Sydney?

 

[QF WP]

My wife will be happy given the support I give QF during DSC's

 

[cwd]

Melbourne - The redevelopment and expansion of the Melbourne Qantas Club and Domestic Business Lounge is already underway. The first phase of the redesigned Melbourne Domestic Business Lounge opens tomorrow and both lounges will be completed by November this year.

This is good timing - will be there tomorrow. Looking forward to seeing what it's like.

 

[michaele]

I wonder if the additional capacity at BNEi will be a dedicated Plat space or just expanded space for everyone.

Disappointed to not see SIN mentioned on this list..

 

[Brettmcg]

I’m curious as to why melbourne’s F lounge isn’t getting refreshed. Maybe it’s the end of there being a first lounge except in Sydney?

You have to bite off what you can chew. MEL's J Lounge is in more dire need of refurbishment than the F Lounge. SYD is getting an upgrade to both - the SYD F Lounge can be an absolute zoo sometimes. Given that QF still have F service to MEL from SIN and LAX, I think the MEL F Lounge is here to stay for a while.

 

[flydoc]

Domestic network earnings up 25% attributed to fuller flights and increased prices.
International earnings up 7%, profit margin steady.
Qantas Loyalty earnings growth just 1% due to “market conditions” and impact of credit card fee changes.
$4 million corporate tax paid, first since 2009.
Further “capacity, revenue and cost efficiency measures” to support fuel price hedging and offset a forecast increase to the FY19 fuel bill, according to AJ.

 

[Ansett]

I doubt any thing will be opened up in terms of rewards especially given that they expect an extra $400 million on the fuel bill next financial year which means that they will be looking for even more savings across the businesses. We may even see more increases in FF points and co payments as the fuel impact comes reality over the next 12 months.

 

[RooFlyer]

I doubt any thing will be opened up in terms of rewards especially given that they expect an extra $400 million on the fuel bill next financial year which means that they will be looking for even more savings across the businesses. We may even see more increases in FF points and co payments as the fuel impact comes reality over the next 12 months.

Not forgetting, though, that we are still paying the old fuel surcharge, its just that they have put it into the main fare - I guess that was just in anticipation of this circumstance