Air Transport World

Qantas: Airways Ltd.)

Although profits remain healthy, Qantas has flagged the need for further cost reductions and business transformation in the face of high fuel prices and growing competition, particularly from sixth-freedom airlines like Emirates. It launched its Sustainable Future program in 2003 aiming to remove A$3 billion from its cost base by 2007-08, but that figure did not reflect the impact of today's energy prices.

Earnings for the fiscal first half ended Dec. 31 declined 10% from the year-ago period to A$352.6 million ($261.3 million) as a 9% increase in revenue to A$6.85 billion was overshadowed by an 11% rise in expenses, almost entirely attributable to higher fuel prices. Earnings for the year to June 30 were not expected to reach last year's figure of A$763 million, which represented an increase of 18% over FY04. …

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