TD Breaking News - $181m profit for Qantas

Qantas profit slumps

Qantas has just reported a $181 million pre-tax profit for the year to 30 Jun, down 87% on last year.

Yields slipped 4.3% due to weaker domestic and international demand, while the overall load factor also fell 1 point to 79.6%.

The carrier said the result was also impacted by one-off events including $130m in extra costs due to industrial action by the Australian Licenced Aircraft Engineers Association, and an estimated $45m hit due to swine flu.

CEO Alan Joyce said the diversity of the Qantas Group's operations had contributed to it "being one of the few airline operators worldwide to produce a full year profit, despite the impact of the global economic downturn.

"There has never been a more volatile and challenging time for the world's aviation industry," he said.

Joyce also announced the addition of four Airbus A330 aircraft, on six-year leases, to allow for Jetstar's long-haul international growth.

"These new aircraft will support the airline's growth across its internatioanl network which covers Australia, South East Asia and the Asia Pacific ahead of the delivery of the Qantas Group's first B787-9," he said

More information in today's Travel Daily