My Account Menu

CAPA Login


Register to trial CAPA Membership!

Qantas issues profit warning, trading conditions see market deteriation in Nov-2013

5-Dec-2013 10:34 AM

Qantas CEO Alan Joyce, in a market update, stated (05-Nov-2013) the group expects to report an underlying loss before tax in the range of AUD250 million (USD225.7 million) to AUD300 million (USD270.9 million) for the six months ending 31-Dec-2013. Mr Joyce noted trading conditions saw a marked deterioration in Nov-2013 in particular, with both passenger loads and yields below the already negative trends for the year to date. Mr Joyce said: “Outlook for the 2HFY14 remains volatile and, given the uncertainty in global economic conditions, fuel prices and foreign exchange rates, it is not possible to provide further guidance at this time”. The carrier also announced the following traffic guidance for 1HFY2014:

  • Group capacity is expected to increase by 1.1% in 1HFY14 compared to 1HFY13;
  • Group Domestic capacity (comprising Qantas Domestic, QantasLink and Jetstar Domestic) is expected to increase by 1.9% in 1HFY14 compared to 1HFY13;
  • Total domestic market capacity is expected to increase by approximately 2.7%, driven by estimated competitor capacity growth of 3.9%;
  • Group yield (excluding the impact of foreign exchange movements) is expected to be approximately 3.5% lower in 1HFY14 compared to 1HFY13, largely due to increased capacity in the domestic and international markets;
  • Group loads are expected to be 1.6 ppts lower in 1HFY14 compared to 1HFY13; and Underlying fuel costs (excluding the impact of the carbon tax) for 1HFY14 are expected to be approximately AUD2.27 billion (USD2.1 billion), an increase of AUD88 million (USD79.5 million) from 1HFY13. [more – original PR]