Difficult market conditions clip wings but hope is offered for this year
Qantas Group may be a media and stock exchange darling after announcing bumper profits but little joy was spread its freight arm’s way.
Group revenue was up 2.4 per cent to $13.96 billion, while net profits nearly doubled, from $560 million to $1.029 billion.
Qantas Freight reported underlying earnings before interest and tax of $64 million, down 44 per cent on last year, as revenues fell from $936 million to $850 million.
This was put down to flat demand against a six per cent global capacity increase and the end of favourable Australian air Express legacy agreements.
“The performance reflected challenging global cargo markets, and more in keeping with historical performance,” the company notes.
But all would appear to be other than lost.
“The result reflects difficult global cargo markets and the end of favourable legacy agreements with Australian air Express, impacting yields,” the group reported.
“However, the business is well-positioned for the future.
“New long-term deals with Australia Post and Toll, the country’s two biggest freight customers, are in place in the domestic market.
“Qantas Freight is also pursuing new opportunities internationally, in particular on triangular Australia-China-US routes.
Initiatives include developing growth opportunities into China through tactical freight deployment to Zhengzhou and Chongqing and scheduling changes such as a new freighter call at Dallas.