Australian carrier seems to have made turnaround
Qantas Airways appears to have made a turnaround, doubling its underlying annual profit as losses in its international business continue to shrink. However, competition on its lucrative domestic routes is getting tougher.
The Australian carrier said today that underlying profit before tax rose to AUD$192 million (€130 million) from AUD$95 million a year ago. Operating losses in its international business halved to AUD$246 million, but profits on domestic earnings fell 21% to AUD$365 million.
The airline posted a full-year net profit of AUD$6 million from a net loss of AUD$244 million a year ago.
Qantas created an alliance with Emirates this year to cut back losses on international routes. But now it has to deal with a slowdown in domestic traffic combined with increasing competition from rival Virgin Australia.
Qantas has cut jobs and spending while selling assets, but capacity is still above demand, Reuters reports.
[photo courtesy Qantas Airways]