QANTAS IS HOLDING its own, despite competition in international and domestic markets, says chairman Gary Pemberton, revealing the group's first financial figures, since it completed privatisation in mid-1995.
Pemberton reports that Qantas pushed up profits by more than 15%, to A$148 million ($110 million) in the first half of its financial year to December. He adds that the improvement is in line with the target set in the privatisation prospectus. The forecast is for a full-year profit of A$237 million for the whole of 1995/6.
Recovery in domestic operations again led the improvement, with profits growing by more than 30%, to A$93 million. Pemberton says that, with improvements in productivity and aircraft utilisation, Qantas is now in a position to match any potential increase in domestic capacity by competitors without ordering any new aircraft.
He adds that latest market-share figures show Qantas continuing to hold its domestic share at around the 53% mark. The airline's domestic traffic grew by 12.5% over the half-year with yields and load factors unchanged.
Profits on international operations stayed at around A$163 million, despite a 5.6% growth in traffic. Pemberton says that international market share is still close to 40%, but warns that this is expected to fall as Ansett Australia Airlines and Air New Zealand win new route rights.
The group's cost-cutting plan is running ahead of schedule, says Pemberton, with the half of the A$300 million in savings promised for 1995/6 already secured.
Source: Flight International
