Qantas has posted a net profit of $111 million in the six months to December 31, up from $42 million in the year-ago period. Although this triples profits, the resultare still far below analyst expectations of $138 million. The airline's underlying profit before tax, which excludes one-off financial items, rose 10% to $223 million. Qantas in November forecast an underlying profit before tax in the range of $180 million to $230 million.
"The operating environment remains complex and volatile, but we are now beginning to realise the benefits of the tough decisions that we have made over the past 18 months," chief executive Alan Joyce said in a statement on Thursday.
Profits were bolstered by the A$125m compensation Qantas received from Boeing for delays and the eventual cancellation of its 787 order.
"Qantas International is well advanced in its turnaround plan," he said. "We are confident that with our balanced portfolio of domestic airlines we will remain the leader in every segment of the market.”
Meanwhile, the airline is Qantas is planning to upgrade its entire fleet of Airbus A330s and order new 737-800s. From late 2014, the airline group intends to reconfigure the interior of 10 A330-300s and 20 A330-200s with a new flat seat in business class, refreshed economy cabin and a new inflight entertainment offering.
The A330-300s will be operated by Qantas International on its network between Australia and Asia, while the A330-200s will be operated by Qantas Domestic on routes between the east coast and Perth – enabling the final retirement of the Group’s Boeing 767s.
The Group will also purchase five additional Boeing 737-800 aircraft for Qantas Domestic (for delivery during 2014) and extend the leases on two existing B737-800s this year.
Qantas profits aided by Boeing comp; planning aircraft order
