Australia Carrier Qantas Soars To Record Profits

Sumaira FH Published August 24, 2016 | 11:20 AM

SYDNEY,(APP - UrduPoint / Pakistan Point News -24th Augst,2016) - Australian carrier Qantas on Wednesday soared to a record annual net profit and announced a first payout to shareholders in seven years in a strong turnaround after major restructuring. The airline reported a net annual profit of Aus$1.42 billion (US$1.08 billion) in the year to June 30, an 80 percent increase from the previous corresponding period.

The result was also boosted by lower fuel prices. Underlying profit before tax -- Qantas' preferred measure -- also hit a record of Aus$1.53 billion. The company resumed paying dividends of seven cents per share, the first payout since 2009 and also announced a share buy-back of Aus$500 billion. "Transformation has made us a more agile business, created value for our shareholders and given us a platform to invest for the future," chief executive Alan Joyce said in a statement.

"Qantas is stronger than ever, but we're also determined to keep changing and adapting so that we can succeed no matter what environment we're in." The aggressive push to cut some Aus$2 billion in costs and restructure the airline over three years kicked off in early 2014, with thousands of jobs axed and dozens of aircraft sold or orders deferred. Qantas said it has since hit Aus$1.66 billion in cost and revenue savings -- including Aus$557 million in the financial year ending June 2016.

The carrier said it expected to reach Aus$2.1 billion in cost and revenue savings by June next year.