Fresh Qantas buyback after 18pc profit lift

Fresh Qantas buyback after 18pc profit lift


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Qantas has lifted first-half profit to $607 million and will return another $378 million of capital to shareholders in the form of a share buyback.

Qantas will return another $378 million of capital to shareholders in the form of a share buyback after the carrier lifted first-half profit 18 per cent to $607 million.

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Underlying pre-tax profit for the six months to December 31 soared 14.6 per cent to a record $976 million, although net profit fell short of 2016's record $688 million due to $119 million of costs including redundancies and the introduction of the Dreamliner aircraft.

Qantas has reported a record high half-year profit.  Photo: Louie Douvis

Qantas has reported a record high half-year profit. Photo: Louie Douvis

Nonetheless, Qantas will pay an unfranked interim dividend of seven cents and says it will buy back up to $378 million of shares, which will take the total spent on buybacks since 2016 to $1.617 billion.

Chief executive Alan Joyce says the transformation of Qantas during his tenure - which has included hefty redundancies, route changes and aircraft retirements - has left the airline well placed.

He says Thursday's first-half result includes $181 million of benefits from the transformation program, with a full-year target of $400 million.

"After several years of consistent performance, we now have a lot of momentum behind us," Mr Joyce said in a statement.

"We're vigilant about maintaining that momentum and we're confident about the future it allows us to build."

Net passenger revenue rose to $7.493 billion from $7.064 billion in the prior corresponding period, while freight revenue jumped to $440 million from $416 million.

QANTAS SOARS IN FIRST HALF

  • Net profit up 17.9pct to $607m
  • Total revenue up 5.8pct to $8.66b
  • Interim dividend 7.0 cents unfranked, vs 7.0 cents half-franked in pcp

Australian Associated Press

The story Fresh Qantas buyback after 18pc profit lift first appeared on Queensland Country Life.

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