Lower fares hit Qantas first half profit

AFP, SYDNEY: Australian carrier Qantas Airways posted Thursday a 7.5 percent hit to first half earnings, impacted by lower fares, greater competition and empty seats.
Underlying profit before tax fell to Aus$852 million (US$656 million) for the six months ending December 31, but just beat the airline's own guidance.
This compares to Aus$921 million in the same period of 2015. Revenue was also down to Aus$8.18 billion, 3.3 percent below the previous six months.
Qantas, which has turned itself around in recent years on the back of aggressive cost-cutting, said it was facing increased competition on international routes and a soft domestic market.
"The international market is tough because of capacity growth and lower fares," said chief executive Alan Joyce.
"Qantas International is not immune from those pressures. But the work we've done on removing costs and making the business more efficient means Qantas International is outperforming its peers in the region."
"Cheaper oil has led to strong capacity growth on international routes, pushing fares down and impacting all major airlines," Joyce said.
"Our focus is to stay disciplined on capacity, keep downward pressure on costs, and introduce game-changing improvements like the Dreamliner and high-speed Wi-Fi."

Lower fares hit Qantas first half profit

AFP, SYDNEY: Australian carrier Qantas Airways posted Thursday a 7.5 percent hit to first half earnings, impacted by lower fares, greater competition and empty seats. Underlying profit before tax fell to Aus$852 million (US$656 million) for the six months ending December 31, but just beat the airlines own guidance. This compares to Aus$921 million in the same period of 2015. Revenue was also down to Aus$8.18 billion, 3.3 percent below the previous six months. Qantas, which has turned itself around in recent years on the back of aggressive cost-cutting, said it was facing increased competition on international routes and a soft domestic market. The international market is tough because of capacity growth and lower fares, said chief executive Alan Joyce. Qantas International is not immune from those pressures. But the work weve done on removing costs and making the business more efficient means Qantas International is outperforming its peers in the region. Cheaper oil has led to strong capacity growth on international routes, pushing fares down and impacting all major airlines, Joyce said. Our focus is to stay disciplined on capacity, keep downward pressure on costs, and introduce game-changing improvements like the Dreamliner and high-speed Wi-Fi.