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Qantas’s net profits up 17.8%

Qantas’s net profits up 17.8%

   Australian airline Qantas reported Thursday that net profits for its fiscal year, ending June 30, increased 17.8 per cent to Aus $763.6 million ($574.7 million).

   Qantas’ revenue for the year was Aus $12.6 billion ($9.48 billion), an increase of 11.4 percent over the prior year.

   The airline’s fuel costs for the fiscal year were Aus $1.25 billion ($940 million), a massive 42.5 percent rise over the previous fiscal year.

   “We face a difficult 24 months because of the unprecedented cost of fuel, which we believe will stay at historic high levels,” said Geoff Dixon, Qantas’ chief executive officer, in a statement.

   Qantas said that due to the continued high oil prices, savings of up to Aus $1.5 billion ($1.13 billion) would be required over the following two years. “This will involve some very difficult decisions. One of these has been the program to reduce the number of management positions by 15 percent in the past two months. We have reviews under way in all areas of our business. As further decisions are made, we will consult widely and act in the best interests of the long term future of Qantas and its people,” Dixon said.