Qantas forecasts near-record FY17 first half.
Qantas is predicting a first-half underlying pre-tax profit of up to $850 million, despite a fall in revenues.
In a trading update issued this morning, Qantas says group revenues were down 3% in the first quarter, driven by lower international airfares resulting from increased competition as well as subdued domestic demand.
However, continued cost improvement and lower fuel prices secured through hedging would allow the first half underlying pre-tax profit to be in the range of $800 million to $850 million, which would represent the third-best first half result in the Qantas’ history.
QF Group ceo Alan Joyce said the first quarter has positioned Qantas to deliver another strong first half result.
“Like most carriers globally, we are seeing international air fares below where they were 12 months ago, but the impact of that is tempered by the competitive advantages we’ve been working working hard to fortify including our strong domestic position and diversified loyalty business,” Joyce said.
Group revenue in the first quarter was $3.98 billion, compared to $4.1 billion in the first quarter last year.
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