Qantas FY15 Results posted

[Adrian B]

From QF News Room

Qantas News Room Page

Key points:

· Underlying Profit Before Tax: $367 million

· Statutory Profit After Tax: $206 million

· Transformation benefits: $374 million

· Comparable unit cost reduction: 4.8 per cent[1]

· Cash generated from operations: $1 billion

· Positive net free cash flow: $194 million

· Liquidity: $3.6 billion, including $2.9 billion cash

· Earnings per share: 9.2 cents

· No interim dividend

SYDNEY, 26 February 2015: Qantas today reported an Underlying Profit Before Tax of $367 million and a Statutory Profit After Tax of $206 million for the six months ended 31 December 2014.

This Underlying Profit Before Tax is Qantas’ best first-half performance since 2010 and an improvement of $619 million compared with the same period last year.

The main factors in the underlying improvement were:

· $374 million - Qantas Transformation program benefits;

· $208 million - reduced depreciation;

· $162 million - increased revenue per available seat kilometre;

· $59 million - removal of the carbon tax; and

· $33 million - lower fuel prices.

[Nigel C]

After all the QF and Joyce bashing that went on last year when the $2.8B loss was posted, the silence is deafening now that there's been a profit announced.....

[Rowan McKeever]

Mmm isn't it though, Nigel.

Truth is, CEOs are often tasked with the ugly and unenviable role of making cuts and doing things the general populous don't / won't like. The good ones achieve their aims and, by yesterday's indications, it seems AJ is in this camp.

I can honestly say that, despite the 3,800 FTE cut from QF so far, the attitude and service from the onboard and ground crews has been second to none in the last 8-12 months. The old QF seems to be coming back.

Well done to AJ, and well done to his team! Sterling effort everyone

[Stephen Brown]

I think he got lucky with the lifting of the Carbon Tax and the reduction in fuel prices. Getting rid of the 767's without replacing them, only shuffling the deckchairs helps as well. I could have got a profit with those helpers.

Still not 100% convinced he is the best person for the position.

[Rowan McKeever]

The repeal of the Carbon Tax and fuel price reductions account for $92m. Even with the 767 retirement that wouldn't have brought them close to profit. The transformation program and book value write-downs are what got them there. Those things don't happen by luck.

[Stephen Brown]

There is a flow on effect from the Carbon Tax repeal and the fuel prices. Ticket prices go down, more people fly, revenue goes up. I just think that Qantas got into a bad place from bad decisions, then had to fight its way out.

[Daniel M]

Cooked the books for sure

[Ash W]

Originally Posted by Stephen Brown

I think he got lucky with the lifting of the Carbon Tax and the reduction in fuel prices. Getting rid of the 767's without replacing them, only shuffling the deckchairs helps as well. I could have got a profit with those helpers.

The 767's were replaced. With more 737-800's and the return of A330's from JQ.

[Thomas Collins]

Originally Posted by Stephen Brown

Ticket prices go down, more people fly, revenue goes up

Lower ticket prices and higher patronage does not directly translate into revenue growth, and revenue growth does not necessarily translate into margin improvements. You still need to derive a rASK / yield improvement. Diluted / discounted pricing might stimulate demand, but suffice to say; margins need to grow too to generate positive returns.

Originally Posted by Daniel M

Cooked the books for sure

Sort of impossible when you are audited by one of the big three...

But of course, as you work for Virgin - you're going to say that. I guess you should really care more for the ROI Daniel. Proportionally, Virgin performed much poorly than Qantas.

[Nigel C]

Originally Posted by Rowan McKeever

Mmm isn't it though, Nigel.

Truth is, CEOs are often tasked with the ugly and unenviable role of making cuts and doing things the general populous don't / won't like. The good ones achieve their aims and, by yesterday's indications, it seems AJ is in this camp.

I can honestly say that, despite the 3,800 FTE cut from QF so far, the attitude and service from the onboard and ground crews has been second to none in the last 8-12 months. The old QF seems to be coming back.

Well done to AJ, and well done to his team! Sterling effort everyone

Absolutely it's deafening. Since the profit announcement there's hardly been a whimper of positive comment from any of the naysayers from 6 months ago. I'm certainly yet to hear anyone else apart from your comment here congratulating the board and hoping they'll stay on for longer.