Qantas forecasts A$1.4 billion annual profit

Qantas has forecast a better-than-expected annual underlying pre-tax profit of between A$1.35 billion (K3.18bn) and A$1.4 billion (K3.3bn), the second largest in its history, on the back of the strength of its domestic operations.
Australia’s biggest airline says it has seen an improving performance from its domestic operations and its frequent flyer program.
That has been partially offset by continued weakness in its international business, amid intense competition.
“Last year, we posted the highest earnings in Qantas’ history and our guidance today would make this year’s underlying profit the second best in almost 100 years,” chief executive Alan Joyce said.
“Between our domestic flying businesses, Qantas and Jetstar, and Loyalty we are delivering solid earnings growth.”
Qantas made an underlying pre-tax profit of A$1.53 billion  (K3.6bn) in 2015/16, with low oil prices and savings from its operational overhaul major contributors.
Joyce said the international market remains tough as capacity growth drives airfares lower, but those challenges have eased.
“Because of the work we’ve done to transform Qantas, our international businesses are navigating the headwinds better than our key competitors,” he said.
Joyce’s overhaul of Qantas included mass job cuts and the sale of non-core assets, including its Sydney Airport terminal.
The restructuring is expected to have delivered A$2.1 billion (4.9bn) in benefits by June 30.
– AAP