Logistics News

Qantas Freight helps put wind beneath group wings

Air cargo lifts its weight as group hails return to profit.

 

Qantas Freight’s gross profits have taken off, recording its best first half financial result since just before the global financial crisis hit.

Underlying earnings before interest and tax (EBIT), the bottom-line measure given for the freight arm of the Qantas Group, was $54 million, up 500 per cent from the previous first half and its best first-half result since 2006/7.

“International cargo markets continued to recover, accounting for $43 million of underlying EBIT, with the China-US and US-Australia markets performing well,” the group says.

“The domestic market was more challenging, in line with the mixed economic environment.”

This was helped by a $16 million boost from the group-wide ‘Qantas Transformation’ initiative, and came despite a 3 per cent fall in revenue from $568 million to $550 million, reflecting the exit of one B747-400 freighter aircraft, “leading to improved yield and load from remaining B747-400 freighter operations”.

The company says the arm’s revenue load factor – revenue freight tonne kilometre (RFTK) over available freight tonne kilometre (AFTK) – rose four percentage points or 7 per cent from 53.9 per cent to 57.7 per cent.

There were no details for Qantas Freight’s internal segments, though its fleet of five freighters remained unchanged.

Group net profits were up 186 per cent from a loss of $235 million in the previous first half to a profit of $203 million, though revenues improved only 2.1 per cent from $7.9 billion to $8.07 billion.  

Along with Qantas Transformation gains, the group saw positives from reduced depreciation expense, the removal of the carbon tax, and lower Australian dollar fuel prices.

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