For the first time in a number of years, Qantas last week announced a profit in their half-year results. The highlight of the results is an underlying profit before tax of $367 million.
Qantas’ controversial cost-cutting seems to be the main source of the improved financial position. The airline reports that a staggering $374 million has been saved through what it calls its “transformation program”, which featured staff cutbacks and early aircraft retirements.
Other factors include increased revenue from airfares, lower fuel prices and the removal of the carbon tax. The truce in the “capacity war” Qantas was engaged in domestically with rival Virgin Australia over recent years has no doubt helped too.
Many of our members have welcomed the positive news.
Good to see things are on the improve.
Others are somewhat sceptical that the news is reason to celebrate. As part of the transformation program, a number of Qantas’ international routes were axed and several thousand employees were made redundant.
Let’s not forget there have been a lot of job cuts to help achieve this profit
One member questions the $59 made as a result of the abolition of the carbon tax. It is noted that while Qantas raised airfares as a direct result of the introduction of the tax a few years ago, it did not reduce them when the tax was repealed.
Nice to see the $59M donation (for the half year) to QF profits from the ‘mad monk’ with the removal of the carbon tax. Should the ACCC now force QF to reduce their prices accordingly? QF announced that they would charge (and did) us for the carbon tax but when it was abolished, it was all very quiet.
As they discuss the results and what this means for Qantas and its customers, many of our members are looking ahead. What does the future hold? Many are optimistic that if Qantas continues making a profit, they will consider adding destinations and investing in new aircraft. In particular, there is talk that we could be seeing red-tailed Boeing 787 aircraft as early as 2017.
Other wishes for the future of Qantas include:
Now give us 787s please and make QFi even more profitable and add new destinations and hey lets get Perth back on to the International QF radar.
Now that Qantas is returning to profit, what would you like to see happen? Join the discussion HERE.