Record Profit for Qantas

[Foreigner]

$1.02b for FY16 though falling short of expectations...

Qantas posts record $1b profit, will pay first dividend in seven years

Some staff awarded bonus of $3k each.

 

[Buzzard]

I wonder what bonus AJ will get.

 

[anat0l]

I wonder if the "fall short of expectations" will put off rather than impress the market (and thus the share price).

Obviously the price of fuel has helped Qantas a lot; it would have been interesting to see what the books would have looked like without favourable fuel prices. That point may help out a little while longer, because right now the demand for flying is rather flat.

I wonder what bonus AJ will get.

Same as always - whatever the board gives to him. No chance in hell that AJ will voluntarily take a cut, or even forgo it.

 

[JohnK]

No wonder with airfares such as $159 one way SYD-BNE. When did they sneak in the last $4 increase. These are some of the most expensive airfares in the world.

And the reduction in customer service must have helped the bottom line tremendously. Wait times of >1 hour don't matter to customers who are keen to use their service. After all where can they go?

Give the management a round of applause and sizeable bonus for a job well done.

 

[docjames]

$3000 for non-exec full timers, $2500 for part-timers.

 

[pauly7]

Fantastic result for QF international as well, which will give them the confidence to carefully grow the business with the new metal arriving next year

 

[TheInsider]

$3000 for non-exec full timers, $2500 for part-timers.

Then $0 for the ground customer facing staff...

 

[Spongbob]

It seems about half the profit ($600m of the $1,1300m) is due to lower fuel costs.

 

[yohy?!]

stat. profit after tax history

2014 -2.8bil
2015 0.5bil
2016 1.0bil

 

[docjames]

No disclosure of fleet plans other than the already announced 789s coming for QF.

I'd have thought they'd also be obliged to show any forward liability for forward orders (eg. the residual A380 rights and/or the million 787s and 320s they still have orders/rights on)?

 

[juddles]

...No wonder with airfares such as $159 one way SYD-BNE. ....

Seriously? A quality, safe, airplane interstate ride that costs less than an average days wage? And yet people still complain?? Some people will only be happy when Qantas offers flights in business (and full-flat in a widebody) for FREE before they are happy. But wait, no, even then there will be complaints because of the poor menu choices, the lack of a selection of twenty three boutique beers, and lack of on-arrival, all-the-piss-you-can-drink, lounge access.

And God forbid someone try to feel success with an airline that still dares to serve lamb stew

 

[medhead]

No wonder with airfares such as $159 one way SYD-BNE. When did they sneak in the last $4 increase. These are some of the most expensive airfares in the world.

Yep my ADL/SYD snuck up $5 between my last 2 searches, that's on the expensive flight that is NEVER advertised at the base level for the route. I think I concluded it happened on 1 July. Having also cut out the 7am departure that was always at base level or on sale has no doubt helped to prop up prices.

If I was paying those prices then I'd be paying more than a days wages (net income tax) for the airfare. Strangely enough I'm happy with a coffee and a cup of water at 6 am. I sure as hell ain't looking for a bender on 23 boutique beers.

 

[Foreigner]

Fantastic result for QF international as well, which will give them the confidence to carefully grow the business with the new metal arriving next year

Any new routes planned?

 

[under the radar]

Seriously? A quality, safe, airplane interstate ride that costs less than an average days wage? And yet people still complain?? Some people will only be happy when Qantas offers flights in business (and full-flat in a widebody) for FREE before they are happy. But wait, no, even then there will be complaints because of the poor menu choices, the lack of a selection of twenty three boutique beers, and lack of on-arrival, all-the-piss-you-can-drink, lounge access.

And God forbid someone try to feel success with an airline that still dares to serve lamb stew

Totally agree juddles...If airfares in OZ and even worldwide actually reflected inflation/cost of living etc....we should be paying LOT MORE. Just research airfares over the past 100yrs as a percentage of income, compared to nowadays!!!!

 

[medhead]

Totally agree juddles...If airfares in OZ and even worldwide actually reflected inflation/cost of living etc....we should be paying LOT MORE. Just research airfares over the past 100yrs as a percentage of income, compared to nowadays!!!!

Only if we totally ignore efficiency gains and reductions in service levels. Or are you seriously suggesting that a flight today with 6 stops including 2 overnights should cost a lot more than $186000 (130 weeks x average wage before tax)? The RBA is telling me that 585 pounds in 1947 are only worth $38000 today.

A Lockheed Constellation carried 29 passengers and 11 crew from Sydney to London with stops in Darwin, Singapore, Calcutta, Karachi, Cairo, and Tripoli (passengers stayed overnight in Singapore and Cairo). A return fare was £585, equivalent to 130 weeks average pay.

But then what does this have to do with the topic?

 

[under the radar]

Only if we totally ignore efficiency gains and reductions in service levels. Or are you seriously suggesting that a flight today with 6 stops including 2 overnights should cost a lot more than $186000 (130 weeks x average wage before tax)? The RBA is telling me that 585 pounds in 1947 are only worth $38000 today.



But then what does this have to do with the topic?

im not suggesting that at all...you totally ignore the costs involved in flying modern aircraft NOWADAYS..from manufacturing/product/safety/security/wages etc etc etc how the world has changed!!! airfares SHOULD BE HIGHER, COMPARITIVE TO WAGES/COSTS OF LIVING TODAY Anyway...that's my opinion.

 

[JohnK]

Totally agree juddles...If airfares in OZ and even worldwide actually reflected inflation/cost of living etc....we should be paying LOT MORE. Just research airfares over the past 100yrs as a percentage of income, compared to nowadays!!!!

Wish my salary reflected inflation and cost of living.

The non-discounted, non-sale airfare SYD-BNE has almost doubled in 5 years. That's not quite right. In fact it is totally wrong. I will definitely not be flying as much.

 

[medhead]

im not suggesting that at all...you totally ignore the costs involved in flying modern aircraft NOWADAYS..from manufacturing/product/safety/security/wages etc etc etc how the world has changed!!! airfares SHOULD BE HIGHER, COMPARITIVE TO WAGES/COSTS OF LIVING TODAY Anyway...that's my opinion.

Well for a start, I haven't made a statement about what airfares should be - as such I've haven't excluded or included anything. I'm simply pointing out that it is not just a matter of only considering things that might have increased in cost (i.e. manufacturing/product/safety/security/wages) but to look at the full picture. For example these days aircraft are more fuel efficient, they have greater payloads, they have increased utilisation (i.e. they can travel between london and sydney at least 12 times in 12 days rather than 1), not running trains between Paris and Brindisi, not putting people into hotel for 2 nights, not having to provide high quality meals for 12 days.

Another factor is the disparity between the increase in the value of money and the increase in wages. Wages have increased faster than the value of money. 585 pounds in 1947 is $38000 today, it was 130 times average weekly wages back then. So wages should be $9 a week today, or $468 a year, if it was based on the increase in the cost of buying goods. The average wage is instead $74700 today - I'm sure an economist can explain the thing about increase in productive that supports the much greater increase in wages. This is a difference that makes life a bit more complex than just multiplying wages to work out what things should cost. Anyway, it's just another factor that needs to be accounted in any analysis.

My contention is that your analysis seems to be flawed to not consider all factors. I also don't believe that any complete analysis will show that a return flight between london and sydney should be more than $186000 in 2016. Does an airline really need to collect $55.8 million in revenue for a return flight to make a profit? 2 return flights a day on the "kangaroo" route gives $40 billion per annum in revenue just from the kangaroo route. What is the list price of 4 A380s?

JohnK makes an important point - my wage has decreased compared to inflation recently. The same can't be said for the domestic airfares that I buy.

 

[MEL_Traveller]

im not suggesting that at all...you totally ignore the costs involved in flying modern aircraft NOWADAYS..from manufacturing/product/safety/security/wages etc etc etc how the world has changed!!! airfares SHOULD BE HIGHER, COMPARITIVE TO WAGES/COSTS OF LIVING TODAY Anyway...that's my opinion.

Airfares are where they are because that is what airlines can get away charging for them. This is a combination of reduced staffing, highly efficient planes, planes that break down less, planes that can fly farther, greatly increased payloads, cheap fuel, reduced catering, seat pitch and amenities. Plus the forces of competition at work. Airlines could try and charge 10x weekly wages for a flight but they'd be out of business pretty quick.

 

[Moindardt]

There are a lot of routes in the USA that are more expensive than comparative flights in Australia and they have 35x the population density and considerably more carriers. Personally I think airfares are pretty reasonable considering comparative costs of buses or trains.

Considering they have to work in one of the worst industrial relations countries in the world and deal with 50 million levels of incompetent government bureaucracy, I think they deliver a pretty excellent product for half a days wage.