Qantas notes total Group capacity increase of 5% y-o-y in FY2016

Qantas Group reported (23-Feb-2016) the following operating expectations:

• Qantas Group capacity is expected to increase by 5% in FY2016 compared to FY2015. In 2HFY2016, Qantas expects:
• • Qantas Group domestic capacity to grow by approximately 2%;
  • Qantas International capacity to grow by 9%;
  • Jetstar International capacity to grow by 12% with the higher seat count of the Boeing 787-8.
• Underlying fuel costs in FY2016 are expected to be no more than AUD3.4 billion (USD2.5 billion), AUD3.3 billion (USD2.4 billion) at current forward AUD prices;
• Depreciation and amortisation expense in FY2016 is expected to increase to AUD1.25 billion (USD900 million);
• Transformation benefits (fuel efficiency, cost and revenue) in FY2016 are expected to be AUD450 million (USD325 million);
• Net capital expenditure in FY2016 is expected to be approximately AUD1 billion (USD720 million).

Having regard to industry and economic dynamics, Qantas noted no profit guidance is provided at this time. [more - original PR]