Qantas to swing back to profit this year

Slashing costs and capacity appears to be working

Qantas returned to underlying profitability in the first three months of its financial year, namely July to September, news agency Reuters reports. Its CEO commented that a strategy of slashing costs and capacity appeared to be working.

Specific figures have not been given, but shareholders were told that the company expects an underlying first-half profit this year.

Passenger loads and profitability are up, both domestically and internationally, and “preliminary figures indicate that the group has made an underlying profit before tax for the first quarter of financial year 2015,” the airline’s chief executive Alan Joyce revealed at a shareholder meeting.

In August, Qantas reported an underlying net loss of AUD$646 million (€448 million) for the year to June 30. A price war with rival domestic carrier Virgin Australia damaged both airlines, but the carriers have since said that the war is over and are boosting passenger volumes, putting upward pressure on fares.

Reuters / ABC News

[photo courtesy Qantas]