Qantas hit by 68.2pc profit loss in second half of 2008

QANTAS Airways has announced a second half pre-tax profit of A$288 million (US$184 million) for the half-year, down 68.2 per cent year on year.

In a company statement, the Australian flag carrier reaffirmed its full-year pre-tax profit outlook of A$500 million for the 12 months to June 30, 2009.

Chairman Leigh Clifford said that while Qantas was affected by the global downturn and the volatility in currency and oil prices, it remained profitable, benefiting from its two-brand strategy, Qantas and Jetstar, its diversified portfolio of businesses and prudent financial management.

Said CEO Alan Joyce: The aviation sector is experiencing a high degree of volatility. Numerous airlines have failed over the past year, while many are unable to produce profits and are at risk of becoming unsustainable.

Qantas is different from others in the aviation industry by its high degree of structural flexibility, he said. With two flying brands and a diversified portfolio of businesses, the group has the scale and scope to respond rapidly to market developments and will be well-positioned to resume growth as soon as conditions improve, he said.

Qantas continued to lead in the domestic market, with 65 per cent share according to the Bureau of Transport and Regional Economics. The group's international market share was up to 30.1 per cent, a 1.8 per cent year-on-year increase.

Mr Joyce said Qantas has responded to the downturn by reducing capacity for the next 18 months. We are accelerating initiatives to reduce costs in the short-term, while continuing to seek permanent efficiency improvements, he said.

Source: American Shipper