Qantas Group underlying EBIT more than halved in FY2012

Qantas Group revenue up 6% - financial highlights for 12 months ended 30-Jun-2012:

• Revenue: AUD15,724 million (USD16,224 million), +5.6% year-on-year;
  • Qantas: AUD11,833 million (USD12,209 million), +5%;
  • Jetstar: AUD3076 million (USD3174 million), +18%;
  • Qantas Frequent Flyer (billings): AUD1187 million (USD1225 million), +14%;
  • Qantas Freight: AUD1013 million (USD1045 million), -4%;
• Costs: AUD15,459 million (USD15,950 million), +8.5%;
  • Fuel: AUD4220 million (USD4354 million), +16.3%;
  • Labour: AUD3774 million (USD3894 million), +2.1%;
• Underlying EBIT (loss): AUD265 million (USD273.4 million), -58.9%;
  • Qantas: (AUD21 million) (USD21.7 million), compared to a profit of AUD228 million (USD235.2 million) in p-c-p;
  • Jetstar: AUD203 million (USD209.5 million), +20.1%;
  • Qantas Frequent Flyer: AUD231 million (USD238.3 million), -32.5%;
  • Qantas Freight: AUD45 million (USD46.4 million), -27.4%;
• Profit (loss) before tax: (AUD244 million) (USD251.8 million), compared to a loss of AUD249 million (USD256.9 million) in p-c-p;
• Underlying profit before tax: AUD95 million (USD98.0 million), -82.8%;
• Net profit (loss): (AUD245 million) (USD252.8 million), compared to a profit of AUD250 million (USD257.9 million) for the p-c-p;
• Passenger numbers: 46.7 million, +5%;
• Load factor: 80.1%, stable;
  • Qantas Freight: 53.5%, -5.1 ppts;
• Yield**: AUD 10.99 cents (USD11.34 cents), +3%;
• Net underlying cost per ASK: AUD 5.58 cents (USD 5.76 cents), +0.4%;
• Cost per ASK: AUD 5.37 cents (USD 5.54 cents), +3%;
  • Jetstar: -2%;
• Total assets: AUD21,178 million (USD21,851 million), +1.5%;
• Cash and cash equivalents: AUD3398 million (USD3506 million), -2.8%;
• Total liabilities: AUD15,289 million (USD15,775 million), +4.0%;
• 1HFY2013 forecast:
  • Capacity: +3% to +4%;
    • Domestic: +9% to +11%; Underlying fuel costs (excl carbon tax): AUD2300 million (USD2373 million), +4.5%. [more - original PR] [more - CAPA Analysis]

*Based on the average conversion rate at USD1 = AUD0.9692 for the period
**Excluding foreign exchange
^ In May 2011, Jetstar introduced a product unbundling model. From that date, revenue from options over the base ticket cost (e.g. baggage allowance, exit seating, in-flight entertainment and meals), which may have previously been sold as a bundled ticket and disclosed as passenger revenue are now disclosed as ancillary passenger revenue

The Group reported ancillary passenger revenue^ increased 284% to AUD346 million (USD357 million) during the year. The Group also reported a 16.4% increase in revenue from passenger service fees to AUD397 million (USD410 million).

Qantas Group: "The Group's operating environment and economic outlook for the first half of 2012/2013 remains challenging, volatile and dependent on a number of uncontrollable external factors. No Group profit guidance is provided at this time due to the high degree of volatility and uncertainty in global economic conditions, fuel prices, exchange rates, as well as the major transformational change agenda underway." Source: Company statement, 23-Aug-2012.