Qantas Reports First Half Fiscal Year 2020 Financial Results
Qantas reported on Thursday their half-year financial results for fiscal year 2020. The carrier reported an underlying profit before tax of $771M, down 0.5 percent year-over-year and a statutory profit of $648M a 6.2 percent decline versus the first half of FY19.
Today, Qantas reported a first half FY20 underlying profit before tax of $771M a year-over-year (YoY) decline of 0.5 percent and a statutory profit before tax of $646M, a 6.2 percent decline versus the first half of FY19. The carrier further reported statutory earnings per share (EPS) of $0.288/share, up 3.2 percent YoY. For H1 FY20, Qantas reported a return on invested capital (ROIC) of 19.6 percent and ended the half with a net free cash flow of $213M. The carrier also returned $647M to shareholders by way of dividends and off-market share buybacks. In Thursday’s announcement, Qantas Group’s CEO, Alan Joyce said,
“Overall, our performance in the first half was very positive and it shows me a strong position going forward. In the domestic market we dealt with some travel demand weakness and a structural change in our overheads from the sale of domestic terminals. Fundamentally, Qantas and Jetstar both did well. Internationally, the growth in passenger revenue outweighed the impact of disruption in Hong Kong and a freight market affected by trade wars. Our ultra-long haul routes like Perth-London continue to perform extremely well. Loyalty achieved another record result. The overhaul of the Frequent Flyer program has increased member engagement, which is key to the program’s long-term success.”
Qantas ended the first half of FY20 with $5.3B in debt, short-term liquidity of $1.7B in cash and a further $1B in undrawn credit facilities. During H1, the carrier retired one 747 and took delivery of three new Boeing 787-9 Dreamliners, bringing the fleet total of the type to eleven, with six remaining aircraft on order. Additionally, Qantas selected the Airbus A350-1000 for their “Project Sunrise” ultra-long haul flights. The carrier will order up to twelve of the aircraft, depending on a finalization of the business case, which is expected by the end of March 2020.