Qantas Airways Limited (ASX: QAN) has reported a full-year net profit to $980 million, an increase of 15%, which it says was helped by strong performances from the domestic flying business of Qantas and Jetstar.
- Net profit up 15% to $980 million
- Underlying profit before tax up 14% to $1.6 billion
- Final dividend of 10cps vs 7.0cps year ago
Australia’s major airline posted a record underlying profit before tax of $1.6 billion, up 14%, while revenue and other income rose 6.2%t to $17.06 billion.
The group’s domestic flying division delivered earnings of $1.1 billion, a 25% jump from the previous year, due to more seats being squeezed on planes, particularly its Jetstar A320.
Qantas international business increased its earnings by 7% to $399 million and maintained its earnings.
The airline has declared a fully-franked final dividend of 10 cents per share, up 3 cents from a year earlier, while a share buyback program is ongoing.
Chief executive Alan Joyce said the record profit reflected a strong market as well as the benefits of ongoing work to improve the business and build long-term shareholder value, but warned of challenges ahead.
“We’re facing another increase to our fuel bill for 2018/19 and we’re confident that we will substantially recover this through a range of capacity, revenue and cost efficiency measures, measures, in addition to our hedging program,” he said in a statement.
Qantas did not provide a specific guidance for 2018/19, but said its fuel bill is expected to jump by $690 million to $3.9 billion, while group expenditure would rise by around $250 million.
It expects transformation benefits of $400 million in the current financial year.
The Qantas share price closed 1.61% lower at $6.72 on Wednesday.
Since the beginning of 2018, the Qantas Airways Limited share price has climbed 33.33%, compared to the S&P/ASX 200 Index, which has gained 3.31% in the period.