Qantas hail record profits
08/21/2007|10:06:00 AM|2007-08-21  eTravelBlackboardAsia

Qantas has revealed a pre-tax profit of $1.03 billion for the year ending June 30, which is up 53.8 per cent from the previous year.

Chairman of Qantas, Margaret Jackson said that the net profit after tax of $720 million was a record and that the company had generated a return above the cost of capital invested in all businesses.

Geoff Dixon, Chief Executive Officer of Qantas said that the strong figures were the result of Qantas’ two-brand strategy with the establishment of Jetstar in 2004 playing a key role in transforming the business.

“The two-brand strategy has enabled us to successfully defend our position in the Australian domestic market, where we currently hold a market share of 67.1 per cent.

“We believe the transfer of 15 per cent of marginal domestic and trans-Tasman flying from Qantas to Jetstar ... to better performing domestic routes and increased investment in the Qantas product has improved the Group’s bottom line over the past three years by $250 million profit before tax,” said Dixon.

Dixon believes the strong performance of the flying businesses in international, domestic and regional markets had resulted in a strong cash flow position.

While the past year has been an unsettling year for Qantas due to the Airline Partners Australia (APA) takeover bid, Jackson said that the company have moved on and are concentrating on future growth and opportunities.