Qantas roars back into black after aggressive cost-cutting

Australian carrier Qantas on Thursday roared back into the black after an aggressive shake-up to stem mounting losses, posting its best interim result in four years helped by a revival in its international arm. The AU$203 million (US$162 million) result in the six months to December 31 marked a stunning turnaround from a net loss of $235 million in the same period in 2013 and smashed analyst forecasts. Chief executive Alan Joyce said the result showed the group was executing the right plan.

The decisive factor in our best half-year result for four years was our complete focus on the Qantas transformation programme.

CEO Alan Joyce

The result was driven by strong performances across all of the airline’s divisions, with both domestic and international operations in profit. Domestic earnings improved to $227 million from $170 million previously while the struggling international arm moved into the black for the first time since the global financial crisis, turning a $321 million loss into a $53 profit. Its low-cost Jetstar offshoot performed well, turning a loss into a profit with the brand growing in Asia and now flying to 66 destinations across 16 countries in the region.

We are meeting or exceeding all our targets as we build a sustainable future for Qantas with an emphasis on growing long-term shareholder value.

Alan Joyce

Qantas Business