Sydney, 23 August (Argus) — Australian carrier Qantas Airways saw its fuel costs rise 18pc from a year earlier for the 2011-12 fiscal year, forecasting the rising costs to continue.
Fuel costs rose by A$645mn ($678mn) to A$4.33bn for the 2011-12 year ending 30 June 2012, with Qantas expecting these costs to be about A$2.3bn in the first half of 2012-13 against A$2.2bn for the 2011-12 six-month period.
The fuel price outlook is uncertain, Qantas chief executive Alan Joyce said. The outlook for air travel was also difficult as the high Australian dollar affects domestic tourism, he said, but Asia will continue to offer high growth potential.
Qantas posted an 82.8pc fall in underlying profit to A$95mn for 2011-12 against A$552mn in 2010-11. Revenue rose 5.6pc to A$15.72bn for the same period. It plans to spend A$1.9bn on capital expenditure in 2012-13, maintaining this level of spending for the following financial year.
The airline is cancelling $8.5bn in aircraft purchases comprising 35 Boeing 787 and 789 passenger jets. This decision does not affect the delivery of 15 Boeing 787-788s to its budget airline unit Jetstar. Qantas plans to boost fleet capacity by 3-4 pc in the first half of 2012-13.
Send comments to feedback@argusmedia.com
km/rjd 2.6
If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.
Copyright © 2012 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.
