(MENAFN- Khaleej Times)Australia's national airline Qantas International bounced back to profit by posting a after-tax profit of A$975 million for the year ended June 30 after heavy losses 12 months ago.
In August 2014 the carrier which has a revenue sharing partnership with Dubai's Emirates airline posted a record loss of A$2.8 billion having written down the value of its ageing fleet. The dramatic turnaround confirms the once struggling airline's transformation programme is succeeding. The transformation program is designed to cut 5000 jobs and save A$2 billion in costs. Qantas said its cost cutting program has saved A$894 million over the past year and allowed it to pay down more than a billion dollars in debt. Posting its strongest profit since before theglobal financial crisis the carrier announced a A$505 million capital return to shareholders and a Boeing 787 Dreamliner order to start a new era. Two years ago Emirates and Qantas entered into a revenue sharing partnership that saw the Australian carrier end a 17-year relationship with British Airways and move its London-bound stop over from Singapore to Dubai. For the 12 months to 30 June 2015 Qantas reported a Statutory Profit Before Tax of A$789 million. The underlying result is aturnaround of A $1.6 billion compared with financial year 2014 including Qantas' best eversecond half performance with all segments of the Qantas Group reporting robust profits andreturning their cost of capital. The driving force behind the result was progress with the Qantas Transformation programwhich realised A$894 million in transformation benefits during the year and saw Qantas meetits target of paying down more than A$1 billion in net debt. As a result Qantas has reachedits optimal capital structure - enabling it to resume shareholder returns while continuing toinvest in growth and renewal. Chief executive Alan Joyce said the milestone acquisition of the next-generation Dreamlinerfor Qantas International marked the scale of Qantas' turnaround and signalled a new phaseof renewal and growth. "We are halfway through the biggest and fastest transformation in our history" Joycesaid. "Without that transformation we would not be reporting this strong profit recommencing shareholder returns or announcing our ultra-efficient Dreamliner fleet forQantas International. "We have reshaped our business for a strong sustainable future - and because we movedquickly and made tough decisions early we have strong foundations to build on." A capital return of A$505 million equivalent to 23 cents per share is proposed to be paid toshareholders in early November 2015. The payment is subject to shareholder approval atthe Qantas Annual General Meeting on 23 October 2015 of the capital return and the relatedshare consolidation. "The financial discipline we have applied means we can reward our shareholders who havebeen both patient and supportive throughout our transformation" Joyce said. "We'redelighted to make this announcement today." Qantas will acquire eight Boeing 787-9 aircraft to be delivered from calendar year 2017 andgradually replace five older Boeing 747s. "New aircraft types have always unlocked opportunities for Qantas" Joyce said. "When our red tail Dreamliners start arriving in two years' time their incredible range andfuel-efficiency will create new possibilities for our network. "For customers the Qantas Dreamliner's improved cabin pressure larger windows and technology to reduce turbulence will deliver the world's best travel experience." -
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