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Qantas, Air NZ, Helloworld : Financial results flow

February 24, 2017 Headline News No Comments Email Email

Airlines and travel companies are posting financial results for the first half of the financial year, the six months to the end of December 2016. Here are some main points from three of the majors.

QANTAS posted a 25% profit slide, reflecting increased competition and continuing redundancy payments as part of its transformation program which involved pruning staff.

The airline posted a first-half statutory net profit after tax of AUD 515 million, down by 25% on last year’s AUD 688 million interim result.

Main points. Qantas reported an underlying profit before tax of AUD 852 million and a statutory profit before tax of AUD 715 million for the six months ended 31 December 2016.

The underlying result was down 7.5% compared with the prior corresponding period, but above the guidance range provided in October last year. The airline said it reflected “a strong performance in a mixed global aviation market, with the national carrier’s integrated Group strategy and ongoing transformation enabling it to keep delivering value for shareholders while investing for customers”.

Qantas added: “All parts of the Qantas Group were profitable in the half.  Combined domestic airline earnings across Qantas and Jetstar were AUD 522 million, while Qantas Loyalty had a record result, giving the Group a strong, profitable core in an improving Australian economy.  The Jetstar Group as a whole also had a record result.  Qantas International’s profitability is impacted by the high levels of capacity growth affecting all major airlines, but it achieved significantly higher margins than the industry average.”

AIR NEW ZEALAND reported the second best six-month financial result in its history. Increased international competition took a toll, however, the airline’s after-tax profit for the six months to 31 December 2016 fell 24% to NZD 256 million from NZD 338 million last year.

Earnings before tax were the second highest for an interim period in Air New Zealand’s history, which chairman Tony Carter said was impressive in the face of unprecedented competition.

Air New Zealand chief executive Christopher Luxon said the New Zealand carrier’s strategy of diversifying its network in the Pacific Rim and New Zealand had succeeded, with the Houston and Buenos Aires routes performing strongly in their first year of operation. He said the airline and its partners had brought about 45% of inbound visitors to New Zealand.

HELLOWORLD also released its half-yearly results. The acquisition of AOT Group helped revenue grow strongly in the company’s wholesale/inbound division. Revenue in the segment almost doubled to AUD 69 million.

According to the financial site Motley Fool, highlights included:

  • Total transaction value (TTV) was AUD 2661.9 million, an increase of AUD 55.9 million or 2.1%.
  • Revenue increased 23.2% to AUD 171.2 million.
  • Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 270.3% to AUD 30.1 million.
  • Net profit after tax was AUD 12.9 million, compared to a loss of AUD 1.7 million in the prior corresponding period.
  • Reconfirmed FY 2017 guidance of EBITDA between AUD 47 million and AUD 51 million.

Edited by Peter Needham

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