Qantas Freight holds up as group loses hugely


Global air cargo markets remained challenging but arm has earnings

Qantas Freight holds up as group loses hugely
Qantas Freight took a hit but remains a positive

 

Qantas Group may have sprayed red ink around like a horror movie but at least its freight arm kept its head above the mess.

Qantas International capacity reductions reduced freight capacity, its financial results note.

The group itself lost a record $2.8 billion, with CEO Alan Joyce insisting that such pain was now history.

"There’s no doubt that today’s numbers are confronting," Joyce says.

"But they represent the year that is past, and we have now come through the worst."

Qantas Freight reported underlying earnings before interest and tax of $24 million, compared with $36 million in the previous year, with $11 million of that decline reported in the first half of financial year.

On a positive note, revenues were up 3 per cent from $1.056 million to $1.084 million.

"Earnings were lower as a result of the sale of Star Track Express in FY13, while global air cargo markets remained challenging," the group says.

"However, the integration of Australian air Express with Qantas Freight is now complete and full run-rate benefits began to flow in the second half of FY14."

Looking ahead, this segment is relying on improving its "customer proposition" through simplified pricing, a new product range and faster terminal processes, as well as leveraging technology to achieve cost reduction.

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