Business Round-Up
Qantas result short of forecasts
October 1st 2013
Qantas Airways reported an underlying profit of A$192 million (US$120 million) for the fiscal year ended June 30, compared with a loss of A$244 million a year ago. Qantas doubled the results after selling assets, cutting jobs and shrinking its international routes to a skeletal network. Read More »
The carrier said underlying losses at its international arm were halved to A$246 million, but profits on its domestic subsidiary fell 21% to A$365 million. The operating environment remained tough and volatile, particularly in the competitive Asia-Pacific, it added.
“A competitive domestic market and additional start-up losses had resulted in a 32% decrease in annual profits for Qantas’ low-cost carrier group, Jetstar”. Jetstar said it has cost A$50 million, so far, to set up 18-month old Jetstar Japan and the yet to be launched Jetstar Hong Kong.
Qantas CEO, Alan Joyce, said the Japanese airline market was six times the size of Australia’s yet low-cost carriers made up only 5% of airline capacity. Jetstar Japan is the largest LCC in Japan, with its fleet of 12 A320s. “We also expect demand growth from {with our offshoots] LCC carriers in Vietnam and Hong Kong,” said Joyce.
