Qantas Freight reports $3M profit loss
The second half of 2011 was rather challenging for Qantas Freight. The Australian cargo carrier saw earnings before interest and taxes plummet $3 million from the same period of 2010, totaling only $38 million.
Qantas CEO Alan Joyce said this number speaks to challenges affecting carriers worldwide. “Qantas Freight has been affected by high fuel costs and weaker demand across the cargo sector, resulting in loads declining,” he said in a statement. “However, a good performance in the domestic express freight market and increased contract revenue helped minimize the overall drop in earnings.”
This decrease extended to Qantas’ passenger sector, as well. Overall, the carrier reported an underlying profit before tax of $202 million in the second half of 2011, a $215 million, year-over-year, loss. According to a press release, this number reflects the $194 million financial impact of a labor dispute that grounded flights in late October and the 26-percent, year-over-year, increase in fuel costs.
Nevertheless, the October 31 resolution of the labor dispute helped reignite business, Joyce explained. “While the impact of the dispute was severe, our portfolio of businesses once again demonstrated its resilience in difficult conditions,” he stated. “Improvements in operating cash flow, revenue, yield and unit costs, and record results for Jetstar and Qantas Frequent Flyer, helped offset the financial effect on the group.”
Qantas is also in the midst of reducing its expenses by deferring Boeing 787-800 deliveries and reducing domestic flight capacity.