Qantas expects to report AUD140-190m profit in 1HFY2012

Qantas expects (28-Nov-2011) to report underlying profit before tax of between AUD140 million (USD138 million) to AUD190 million (USD187 million) for the six months ended 31-Dec-2011, despite increases in fuel costs and the impact of the industrial action. Qantas estimates the impact of industrial actions by the Australian Licenced Aircraft Engineers Association (ALAEA), the Transport Workers Union (TWU) and the Australian International Pilots Association (AIPA), and the subsequent grounding of the Qantas domestic and international fleet will have an unfavourable financial impact of AUD194 million (USD191 million) in 1HFY2012. The carrier also reported the following additional forecast for 1HFY2012:

• Yield^: +3% to +5% year-on-year;
• Capacity: +4% to +6%**;
• Fuel costs: Increase from AUD1700 million (USD1670 million) to AUD2200 million (USD2162 million). [more - original PR]

*Based on the conversion rate at USD1 = AUD1.01771
^Excluding foreign exchange
**1HFY2011 included a reduction in capacity as a result of the grounding of Qantas' A380 fleet following a Rolls-Royce engine failure

Qantas: "International bookings for the period up to January have also recovered, but at a slower rate because of the longer lead times associated with international travel. Forward bookings for international travel in the second half of the financial year are now in line with normal trends," Alan Joyce, CEO. Source: Qantas, 28-Nov-2011.