Qantas says new jets power higher sales, profit

Qantas says new jets power higher sales, profit

The airline said revenue climbed 6.3% year-on-year to A$12.9 billion (US$9.2 billion) in the six months to Dec 31.

Qantas Airways also reported higher spending on salaries, fuel and other costs such as aviation and landing charges and passenger handling. (EPA Images pic)
SYDNEY:
Australia’s Qantas Airways said on Thursday new fuel-efficient aircraft and strong demand for travel helped to drive up sales and deliver a steady half-year profit.

Fuel-efficient, low-maintenance planes were attractive to passengers but also allowed the company to open up new routes, it said.

Revenue climbed 6.3% year-on-year to A$12.9 billion (US$9.2 billion) in the six months to Dec 31, the airline said.

Net profit edged up 0.2% to A$925 million.

“What’s driving this performance is really clear: continued strong demand for travel combined with new aircraft that are fundamentally changing how we deliver for our customers and grow our business,” said chief executive Vanessa Hudson.

“Australians’ appetite for travel continues to be incredibly strong.”

Passengers were showing strong demand for premium seats on Qantas while budget offshoot Jetstar was flying more people to holiday destinations, she said.

Jetstar’s new fleet was delivering better fuel efficiency, lower maintenance costs, and providing the flexibility to open new routes, Hudson said.

Qantas expected to see similar benefits as it brought in new aircraft, with 30 new planes due to arrive over the next 18 months.

The airline also reported higher spending on salaries, fuel and other costs such as aviation and landing charges and passenger handling.

“Airport charges and government fees have increased at double the rate of inflation over the past 12 months,” Hudson said.

“We are offsetting these where possible through transformation and we’re working across the industry to minimise the impact and see what can be done to ensure this doesn’t impact the ongoing affordability of air travel in this country.”

Qantas forecast strong travel demand in the rest of the financial year across its business, adding that it would be monitoring the “evolving economic environment” in the US.

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