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REPORTING SEASON: Qantas Airways Ltd (QAN)

Brought to you by CommSec

 

Figure 1: Qantas Airways Ltd 12 month chart

 

Qantas (QAN) has posted its best first half result in four years

 Qantas Airways (QAN) returned to profitability with a better than expected $206m half-year profit for the six months ended 31 December 2014. Its $367m underlying profit beat the airline’s guidance and marks its best first half result since 2010.

 Earnings were driven by QAN’s transformation program which added $374m to profit. The repeal of the carbon tax and lower fuel prices contributed $92m.

 Jetstar Group delivered $81m in profit and was the flagship airline’s biggest earner. QAN International recovered from a $262m loss a year earlier to make $59m in underlying profit. Income from Qantas Freight improved fivefold to $54m.

 No interim dividend was declared. QAN last paid a dividend in April 2009.

 Looking ahead, QAN provided no profit guidance due to “…volatility and uncertainty in global economic conditions, fuel prices and FX rates.” QAN expects benefits of at least $675m from its ongoing transformation program this year.

 The group’s shares shot higher following the result. QAN is up ~20% since 1 January and more than doubled in value over 2014.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Steven Daghlian, Market Analyst,