Australian airline Qantas forecasts lower fuel costs will contribute to higher than expected profitability for its July-December fiscal first half.
Lower Australian dollar fuel prices will lift profitability by A$30mn ($24.91mn) in the first half, Qantas said. It expects to report an underlying profit before tax in a A$300mn-A$350mn range during the period. The airline posted a A$111mn profit in the 2013-14 first half compared with A$42mn for the same period a year earlier.
The forecast improved profitability also reflects the airline's programme of cutting costs and boosting efficiencies, Qantas said. It plans to realise A$350mn of benefits in the current half year and is on track to report its strongest financial result since 2010.
Qantas reported record fuel costs of A$4.5bn in 2013-14, up by 6pc from a year earlier and contributing to a loss of A$2.84bn in 2013-14 against a profit of A$2mn in 2012-13. Fuel costs accounted for 28pc of the airline's operating costs of A$15.79bn in 2013-14.
km/rjd
Send comments to feedback@argusmedia.com
If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.
Copyright © 2014 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.

