Qantas profits soar in 1HFY2011, FY2011 profits expected to be stronger

Qantas revenue up 10%- financial* highlights for the six months ended 31-Dec-2010:

• Revenue: USD7610 million, +10% year-on-year;
  • Qantas: USD5720 million, +8%;
  • Jetstar: USD1349 million, +19%;
  • Qantas Freight: USD546 million, +10%;
  • Ancillary passenger revenue: USD128.3 million, -9.9%;
• Costs: USD7245 million, +6.8%;
• Operating costs: USD6265 million, +8%;
  • Labour: USD1885 million, +8.7%;
  • Fuel: USD1718 million, +9.6%;
• Underlying operating profit: USD453.1 million, +47%;
  • Qantas: USD165.4 million, +175%;
  • Jetstar: USD143.3 million, +18%;
  • Qantas Frequent Flyer**: USD189.5 million, +20%;
  • Qantas Freight: USD41.1 million, +141%;
  • Jetstar Asia#: USD13.3 million;
• Net profit: USD241.6 million, +315.5%;
• Total assets: USD20104 million, +0.7%;
• Total liabilities: USD14059 million, +0.7%;
• Operating cash flow: USD744.8 million, +54%;
• Net debt: USD2564 million, +15.8% when compared with period ended 30-Jun-2010;
• Passenger numbers: 22.9 million, +9.1%;
  • Qantas domestic: 9.0 million, +5.4%;
  • QantasLink: 2.5 million, +15.7%;
  • Jetstar domestic: 4.9 million, +14.5%;
  • Qantas international: 3.1 million, +1.5%;
  • Jetstar international: 2.1 million, +4.9%;
  • Jetstar Asia: 1.4 million, +33.0%;
• Load factor: 81.7%, -0.7 ppt;
  • Qantas domestic: 82.0%, -1.0 ppt;
  • QantasLink: 71.0%, +1.3 ppt;
  • Jetstar domestic: 81.4%, -2.2 ppts;
  • Qantas international: 83.6%, -0.5 ppt;
  • Jetstar international: 78.3%, +0.7 ppt;
  • Jetstar Asia: 78.9%, -0.7 ppt;
• Yield:
  • Passenger: USD 11.05 cents, +6.8%;
  • Qantas Freight: +12%;
• Cost per ASK: USD 8.25 cents, +1.7%;
  • Jetstar: USD 4.91 cents, +2%;
• 2HFY2011 foreast:
  • Capacity: +11%. [more]

*Based on the conversion rate at AUD1 = USD1.00244
**The Qantas Frequent Flyer results include the impact of the change in accounting estimate, which has contributed AUD82 million to the 1H11 result and AUD78 million to the 1H10 result.
#Based on the conversion rate at USD1 = SGD1.27882

Qantas: "Forward bookings indicate yields in the second half of FY11 will be higher than the same period in FY10, noting that the first half is typically a stronger revenue period due to seasonal factors. Given the first half result, Underlying PBT for FY11 is expected to be materially stronger than FY10," Company statement. Source: Qantas, 17-Feb-2011.