Qantas CEO reiterates investment in air freight and divestment in road freight as key to returning profitability
November
2, 2012
Qantas CEO Alan Joyce has reiterated investment in air cargo and divestment in road freight as key steps to returning the airline to profitability.
Addressing shareholders at the airline’s annual general meeting today, Joyce says he recognises the importance of capital management to investors.
“Our capital expenditure requirements for 2012-13 are now at the lower level of $1.9 billion and will be at most $1.9 billion next financial year,” Joyce says.
“In the second half of 2011-12, we were cash flow positive by $200 million – meaning that our operation cash flows exceeded our capital investment requirements.”
Joyce says Qantas
plans to
continue to only invest in areas of the business that will generate sustainable returns, noting the company’s divestment in Star Track Express and investment in air cargo as examples.
“We have divested our stake our stake in the Star Track Express road freight business as we focus on our core portfolio,” Joyce says.
“Having worked closely with Australia Post to restructure our joint venture, we will generate more than $400 million in cash from the sale of Star Track Express and strengthen our cargo operations by integrating Australian air Express.”
Qantas shareholders have not received any dividend payments for the past three years.
The airline reported a $245 million loss for the 2011/12 financial year, due to industrial disputes and high fuel prices, and its international operation, Qantas International.