WHAT appeared to be ruthless fat-trimming and restrategising in the last two years is paying off, as Qantas outperformed analysts’ forecasts thanks in part to lower fuel prices.
The Australian flag carrier reported A$203 million (US$158.2 million) for the six months leading up to December 31, 2014, compared to the net loss of A$235 million for the same period in 2013.
Qantas generated A$367 million in underlying profit before tax against last year’s A$252 million loss, and the airline said both domestic and international operations are back in profit.
This marks the first time in four years that the Australian carrier has recorded a half-year profit, according to AFP, which quoted chief executive Alan Joyce as saying: “The decisive factor in our best half-year result for four years was our complete focus on the Qantas transformation programme.”
He now expects all Qantas’ operating segments to be in the black for the full year.
Qantas has, on previous occasions, made headlines for sweeping cuts to its operations meant to bring the airline back to profitability, including the termination of thousands of jobs, deferment of aircraft deliveries, and freezing the growth of Jetstar.
According to AFP, lower fuel prices, reduced depreciation after a fleet restructure and good performance from Jetstar boosted revenue.
