Qantas announces buyback off record $976m half-year profit

Qantas has reported a 14.6 per cent increase in underlying before tax profit for the first half of the year, jumping to $976 million compared to $852 million in the same half last year.

The result handing down on Thursday was above guidance of between $900 million and $950 million the airline forecast in October and is its highest ever first-half profit.

Qantas also announced $500 million in shareholder returns, through an on-market share buy-back round of up to $378 million and a 7¢ a share interim dividend.

“After several years of consistent performance, we now have a lot of momentum behind us," chief executive Alan Joyce said.

"Today’s result comes from investing in areas that provide margin growth and a network strategythat makes sure we have the right aircraft on the right route."

Qantas said total revenue grew 5,8 per cent to $8.66 billion in the six months to December 31.

Bottom line net profit after tax increased 17.9 per cent to $607 million.

Earnings from Qantas’ domestic operations grew 20 per cent to $447 million - a record result, with revenue per seat flown up 9 per cent supported by the ongoing capacity war truce with Virgin Australia and a bump in demand from fly-in fly-out resources workers.

But earnings fell 5.5 per cent in international, despite a 7 per cent increase in revenue as higher fuel costs and increased competitor capacity hit its bottom line.

More to come

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