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AUSTRALIA-EARNINGS-AVIATION-QANTAS
Qantas Airways profits lower after oil prices rise
SYDNEY, Aug 22, 2019 (BSS/AFP) – Qantas Airways posted a 6.5-percent fall
in annual net profit Thursday, attributing the slide in earnings to higher
oil prices and a weaker Australian dollar.
Despite record revenues, the Australian flag carrier said its after-tax
profit fell to Aus$891 million (US$604 million), down from Aus$953 million
the previous year.
The 99-year-old airline was hit by an Aus$614 million fuel bill increase
and Aus$154 million in foreign exchange impacts.
But Qantas CEO Alan Joyce was upbeat about the results, which came on the
back of healthy profits the previous year.
“Even with headwinds like fuel costs and foreign exchange, we remain one
of the best-performing airline groups in the world,” he said.
In the 12 months to June 30, underlying profit before tax — the airline’s
preferred measure that strips out one-off costs — was down 17 percent at
Aus$1.3 billion.
Qantas declared a final dividend of 13 cents per share and announced an
off-market buyback of up to 79.7 million shares.
It will also hand its workers travel bonuses worth Aus$32 million.
Joyce said the outlook for the airline was “mixed”, with weakness in the
domestic tourism market and flat corporate travel demand.
Nevertheless, he said the airline was “confident” about the year ahead due
in large part to being in a “strong financial position”.
BSS/AFP/HR/0912