Qantas reports profit despite international loss
Qantas Airways, Australia's flagship airline, reported a relatively modest AUD5 million annual profit Thursday. According to the airline company, cost-cutting measures had offset losses at its international arm and helped cut the group's costs down 5%. Qantas chief executive Alan Joyce said the restructuring of the airline's international network delivered AUD171 million in benefits to the company for the financial year.
Underlying profit for the year was at AUD192 million, up from AUD95 million. This excludes significant one-time gains or losses. The airline's international division, however, remained a burden on the company. It posted a loss of AUD246 million.
Qantas posted a record AUD245 million loss last year due to rising fuel prices, strikes that grounded its fleet, and weak demand on international flights. It was the first loss since the airline company was privatized in 1995.
In September of last year, Qantas ended its long-term relationship with British Airways to forge a 10-year partnership deal with rival Emirates. This deal was part of the company's efforts to boost its ailing international division.
Qantas declined to give its profit guidance for the current year.