The Qantas Group has continued to deliver revenue growth in the third quarter of its full year 2019 results, despite the company facing 'significantly' higher fuel costs compared with last year.
Total revenue for the group's third quarter between January and March grew by 2.3% to AU$4.4 billion (approximately $3.03 billion), with group unit revenue up by 4%.
Qantas’ overall market share of corporate travel revenue increased by 2.5% points in the quarter to its highest level in three years, despite a net reduction in capacity.
Group International Unit Revenue increased by 6.2%, with a particularly robust performance by Qantas International. Network changes drove revenue performance, as did competitor capacity reductions on long haul routes in response to higher fuel costs, which in-turn led to increased market share for Qantas International.
Qantas Group CEO Alan Joyce said the third quarter full year 2019 figures showed the national carrier remained in a fundamentally strong position.
“The Group continues to perform well, with strength in key parts of our portfolio helping to hedge against headwinds in other areas.
“Internationally, the outlook is positive and continues to improve. The long-term fleet and network changes we’ve made are delivering revenue growth, and total market capacity in the fourth quarter is contracting in response to higher fuel prices.
“Overall, we expect the Group to achieve a record level of revenue this financial year and strong cash flow as we continue to deliver for shareholders, customers and our people.”
Qantas also said it settled the sale of a terminal at Melbourne Airport and secured future access to it for $355 million, of which it would receive $276 million in cash in the current financial year, with the rest accrued in future periods.