Qantas Freight struggles for lift as group returns ease


Soft freight market sees revenue slide continue for fourth year

Qantas Freight struggles for lift as group returns ease
Qantas Freight revenues continue to fall

 

Freight is struggling to be a consistent performer in the Qantas Group stable, the company’s annual results show.

After quite a strong Qantas Freight showing in 2015, with underlying  earnings before interest and tax (EBIT) at $114 million after a very tough two years beforehand, it has been downhill for the past two years, at $64 million and now $47 million.

More troubling, perhaps, is the more sustained fall in air cargo and domestic express freight revenue, down every year since 2014’s $2.084 billion to last year’s $938 million.

Qantas Group put this down to several factors, including:

weakness in the international market caused by increased wide-body aircraft capacity.

softer demand, partially offset by restructuring (Transformation Program) benefits

reduction in fuel surcharges due to lower fuel price

adverse foreign exchange on revenue.

The domestic freight business was broadly stable and the company hopes the new 737-400 freighter will enable further growth opportunities in the domestic market.

It expects that further investment in next generation digital platforms will enhance the customer experience.

Group results were a fall in net profits from $1.03 billion to $852 million on a revenue fall from $16.20 billion from $16.06 billion.

You can also follow our updates by joining our LinkedIn group or liking us on Facebook