Qantas Bounces Back for Fiscal Year 2012-2013
Revenue for Australia’s largest airline company has increased to 1.1% or at $15.9 Billion, but investors will still not be receiving an interim dividend, as per company’s policy since 2009.
Its domestic operations also made profit. Jetstar, as well as its frequent flyer section were crucial to the company, as it helped trim down any losses.
The result is pleasing many investors, which made Qantas perform better in the market today, selling at 6.5% per share. The result was also a whole lot better than what analysts have predicted. Says one analyst, “Importantly the international turnaround strategy is paying off. Improving the division’s losses by $240 million is a massive achievement, very meaningful when the whole group is only making $372 million.”
“Much is being made of a potential lift in consumer confidence post the election, but we think the bleeding in the domestic business, across both the flagship Qantas banner and Jetstar, is more to do with defending market share against a loss-making Virgin Airlines.”
Qantas’ chief acknowledged that it had been a very touch market, but the company kept its focus on what they can control. It is planning on re-introducing its share buy back program, prompting the sale of shares worth $100 million.
Qantas also announced that the head of the board, Patricia Cross, will be stepping down this October. She will leave with ten directors in the line-up, including the addition of Maxine Brenner, an investment banker, and Jacqueline Hey, a former executive of Ericsson.