Business Round-Up
Good news for Qantas International, Jetstar
March 1st 2013
The Qantas Group’s after-tax, half-year profit to December 31, was up 164% to A$111 million (US$107.7 million). But, most significantly, the losses of under pressure Qantas International, which in the year ended June 30, 2012 had ballooned to more than $400 million after tax, were reduced to $91 million, a 65% improvement on the comparable six months a year earlier. Read More »
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| Jetstar: its budget airlines in growth stage |
“By closing down loss-making routes, retiring aircraft and consolidating maintenance tasks we have taken significant costs permanently out of that business,” said Qantas chief executive, Alan Joyce.
All other segments of the group’s business – domestic, budget arm Jetstar and the Qantas frequent flyer division - reported solid results.
Jetstar’s pre-tax profit decline of 13% to A$128 million was a reflection of conditions in Australia’s domestic market and start-up investments in Jetstar Japan and Jetstar Hong Kong, said Joyce.
“Jetstar’s revenues increased 12% as it positioned itself for a new phase of growth. Jetstar Japan commenced domestic operations in July and has made a strong start with over 600,000 passengers carried in its first six months.
“Singapore-based Jetstar Asia continued to grow, with an improvement in profitability, while the performance of Vietnam-based Jetstar Pacific was also improving after an ownership restructure and fleet renewal programme.”
