Airline News
Big profit bounce in Australasia
March 2nd 2015
Australia’s Qantas Airways has reported an after-tax profit of $160 million, its interim result in four years, reversing a record annual loss of $2.2 billion to last June 30 that prompted calls for CEO, Alan Joyce, to resign. Read More » Qantas largely attributed its turnaround to “transformation benefits” stemming from hundreds of job cuts, deferred aircraft orders and cancellation of loss-making routes. Qantas’ international arm produced a $46 million operating profit, a sharp departure from the $204 million loss it reported a year earlier. The group’s wholly-owned budget arm, Jetstar, posted a $63 million profit, a $75 million year-on-year improvement.
Rival carrier, Virgin Australia, reduced its interim losses by 29%, but still booked an $41 million after-tax deficit. Its fully-controlled, budget subsidiary, Tigerair, posted a $19 million net loss, but Virgin Australia CEO, John Borghetti, expressed confidence Tiger would be profitable this year as it mproves its performance.
Across the Tasman, Air New Zealand has once again outshone the regional competition with first-half earnings up 20%, to a record $160 million, as it increased capacity and improved yields. The Auckland-based carrier was the Asia-Pacific region’s most profitable airline in the 2013-2014 financial year, earning $262 million in pre-tax profit.
Fiji Airways’ restructuring has yielded impressive financial results. The Fiji Airways Group recorded a net profit of F$52.9 million ($25.9 million) for 2014, compared with a profit of F$14.5 million for the previous nine months, to December 31, 2013. The comparison is with a partial year because the airline has switched from a fiscal year to a calendar year for its results.
