Qantas’ Yearly Report is in and the results are fantastic. Qantas has posted a $1.4 billion profit the second highest ever. The result was 8.6% lower than last year due to weaknesses in the resource sector and intense competition on international routes but at the upper end of the airlines guidance.
Qantas profit was turbocharged by its record domestic result, cost savings as part of its Transformation Program and very successful fuel hedging.
Qantas Ratio’s (see Table below) show that Qantas strategic plan has been very effective. Qantas is a much more resilient and efficient business.
Qantas is not sitting still and is aiming for cost savings of $400 million a year for the next 3 years led by its fleet renewal program as the Boeing 787-9 replaces the old 747-400s.
Qantas also announced a $373 million share buyback and declared a dividend of 7c a share.
Alan Joyce was stoked with the result. Shares given to the CEO as part of his performance package elevated him to 6th in the highest paid bosses in Australia.
Qantas also announced that it would pay bonuses of $2500 for full time and $2000 for part time employees, including pilots, cabin crew, engineers, ground crew and office staff.
| 2017 | 2016 | |
| Net Profit Ratio | 8.7% | 9.5% |
| Rate of Return on Owners Equity | 40% | 47% |
| Liquidity Ratio | 0.44:1 | 0.49:1 |
| Gearing Ratio | 125% | 136% |
| Total Expense Ratio | 91% | 89% |
| Revenue Seat Factor | 81% | 80% |