Qantas stuns industry with turnaround

Profit follows last year’s AUD$2.8 billion net loss
Qantas reported its best first-half profit in four years this morning, boosted by cost cutting and lower oil prices. Underlying profit before tax was AU$367 million (€255 million). It follows last year’s AUD$2.8 billion net loss.
“We are meeting or exceeding all our targets as we build a sustainable future for Qantas,” the Australian airline’s Irish-born chief executive Alan Joyce said.
The international division, previously the cause of so many of Qantas’ problems, was profitable for the first time since the global financial crisis. All operating segments are expected to be profitable for the full year, the airline said, and capacity will increase by 1.5% to 2% in the second half. However, a full-year profit forecast was not given.
Unions are not happy with the savage cost cuts Qantas has imposed, however. The airline is only one year into a three-and-a-half-year turnaround strategy, which includes cutting 5,000 jobs.
[pictured: Qantas A380; courtesy Qantas]