Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Fresh Qantas buyback after 18pc profit lift

Stuart Condie  |  22 Feb 2018Text size  Decrease  Increase  |  
Email to Friend

SYDNEY - [AAP] Qantas (ASX: QAN) will return another $378 million of capital to shareholders in the form of a share buyback after the carrier lifted first-half profit 18 per cent to $607 million.

Underlying pre-tax profit for the six months to December 31 soared 14.6 per cent to a record $976 million, although net profit fell short of 2016's record $688 million due to $119 million of costs including redundancies and the introduction of the Dreamliner aircraft.

Nonetheless, Qantas will pay an unfranked interim dividend of seven cents and says it will buy back up to $378 million of shares, which will take the total spent on buybacks since 2016 to $1.617 billion.

Chief executive Alan Joyce says the transformation of Qantas during his tenure--which has included hefty redundancies, route changes and aircraft retirements--has left the airline well placed.

He says Thursday's first-half result includes $181 million of benefits from the transformation program, with a full-year target of $400 million.

"After several years of consistent performance, we now have a lot of momentum behind us," Mr Joyce said in a statement.

"We're vigilant about maintaining that momentum and we're confident about the future it allows us to build."

Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass

Net passenger revenue rose to $7.493 billion from $7.064 billion in the prior corresponding period, while freight revenue jumped to $440 million from $416 million.

QANTAS SOARS IN FIRST HALF

* Net profit up 17.9pc to $607m

* Total revenue up 5.8pc to $8.66bn

* Interim dividend 7.0 cents unfranked vs 7.0 cents half-franked in pcp

 

AAP logo image

© [2018] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

is an AAP journalist.

AAP logo

© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend