Qantas Group delivers 'strong' H1FY2018/2019 results despite 27% spike in fuel costs

Qantas Group reported (21-Feb-2019) it delivered "strong" H1FY2018/2019 results despite a 27% year-on-year increase in fuel costs to AUD2 billion (USD1.4 billion). Qantas Group CEO Alan Joyce said higher oil prices represented a "significant headwind" for the group and it attempted to "quickly recover as much of the cost as we could". Net passenger revenue increased 6% to AUD8 billion (USD5.7 billion), offsetting higher fuel and other costs and achieved through RASK increase of 5.7%, increased yields, higher load factors and higher ancillary revenue in both the domestic and selected international markets. The group noted strong ROIC of 19.3%, compared with 20.7% in the preceding period. Mr Joyce said the group is "really pleased with how the business responded to the challenges and opportunities we saw in the half", adding its dual brand strategy with Qantas and Jetstar in the domestic market delivered record segment earnings. Network capacity is "broadly meeting demand", Mr Joyce continued, including shifts to capitalise on the continued strength of the resources sector. [more - original PR]