Qantas increases full-year profit 44%

[codash1099]

Qantas increases full-year profit 44%
Thursday August 21, 2008, 1:45 pm

Qantas has increased its full year profit by 44.1 per cent as the airline benefited from strong demand for international and domestic flights.
But Qantas is starting to feel the effect of higher fuel costs amid an uncertain economic outlook.
It expects pre-tax profit this year to be in line with the analyst consensus forecast of $825 million, equivalent to a 41 per cent fall on 2007/08.

More at:
Finance, Business and Company News - Yahoo!7

[Jacques Vert]

Not a bad result given the current challenges in the airline business; I'm sure many other airlines would be happy with a result anything like this.

Not surprising that the CFO is moving on; he missed out on the top job and can leave at a time when he can claim a gooc result in a difficult environment. Better perhaps than hanging around for another year and having an inevitable profit fall against your name!

The new CFO will have 5 to 10 years to show how he took over at a difficult time and "turned things around".

Given the results of Virgin and Qantas in these difficult times I think we are pretty lucky in this country to have two well run airlines.

[Optics]

Qantas increases full-year profit 44%
Thursday August 21, 2008, 1:45 pm

Qantas has increased its full year profit by 44.1 per cent as the airline benefited from strong demand for international and domestic flights.
But Qantas is starting to feel the effect of higher fuel costs amid an uncertain economic outlook.
It expects pre-tax profit this year to be in line with the analyst consensus forecast of $825 million, equivalent to a 41 per cent fall on 2007/08.

More at:
Finance, Business and Company News - Yahoo!7

Its good to know the exhorbitant fuel fines we are paying are helping them . And looking at what they say about the coming year, it can only get worse!!

[codash1099]

Its good to know the exhorbitant fuel fines we are paying are helping them . And looking at what they say about the coming year, it can only get worse!!

I don't know whether their report refers to a significant drop in the oil price. Maybe we should expect a drop in the fuel fines? (Turns blue holding breath)

[medhead]

And looking at what they say about the coming year, it can only get worse!!

I don't know, the coming year can't be that bad since the last year was

almost the sweetest sport we've ever seen in aviation

Qantas sees more turbulence ahead | The Australian

A year in which you have to put up fares, keep charging fuel fines and face constant ruin is just about the sweet spot, (!) along with a 44% increase in profit. It seems there has been a boy crying wolf. Thankfully we are going to be rid of him very soon.

What does a bad year ahead mean - only 20% profit increase?

[oz_mark]

I don't know, the coming year can't be that bad since the last year was

What does a bad year ahead mean - only 20% profit increase?

Much of what they have needed to do is manage expectations, especially those of analysts. As quoted

"The result was a little below what we were after and they didn't quite get the guidance but they were pretty close," JPMorgan analyst Matt Crowe said.

i.e. the result was lower than expected, and I think much of the posturing was to ensure that people were not over the top in their expectations.

[medhead]

Much of what they have needed to do is manage expectations, especially those of analysts. As quoted

i.e. the result was lower than expected, and I think much of the posturing was to ensure that people were not over the top in their expectations.

As I said Dixon has a track record of crying wolf and the analysts don't listen to him anymore. If they believed even a faction of his posturing they wouldn't have been expecting profit growth of > 44%.

Dixon himself has called it just about the sweetest spot ever, which = profit growth of 44%. The analysts know this based on their high expectations, which means they've stopped listening to dixon. Dixon's constant doomsaying over a number of years has been a failure and he has therefore failed to managed any expectations.

We're going to go bust, becomes it was the sweetest spot ever. And this has been going on for years.

[JohnK]

But Qantas is starting to feel the effect of higher fuel costs amid an uncertain economic outlook.

Doesn't jet fuel follow the same trends as crude oil? There has been a ~20% decrease in crude oil prices over the last few months so I have no idea idea how that is going to affect the economic outlook.

I don't know whether their report refers to a significant drop in the oil price. Maybe we should expect a drop in the fuel fines? (Turns blue holding breath)

Always one of the first to increase fuel surcharges, or now incorporate them into the base airfare, when crude oil prices increase but then not rollback when crude oil prices drop.

[Mrmaxwell]

Qantas will continue to raise and/or introduce 'fees' so as to ensure they increase overall profit YoY.

While I don't wish for a great Australian company to fail it really frustrates me when companies cry poor as Qantas has and pass so many additional charges onto its customers "out of necessity" only to turn around and increase profit by 44% YoY.