QANTAS AIRWAYS, Australia’s largest carrier, has pointed to early signs of a pick-up in air travel after posting its first half-year loss in six years as the industry battles the worst global recession in decades.The loss however was smaller than analysts expected, and comments that yields, which measure revenue per miles travelled, have stabilised helped to lift the airline’s shares by as much as 6 per cent.
“Everybody was assuming the worst and Qantas delivered a slightly better-than-expected result,” said Constellation Capital Management investment analyst Brian Han.
The airline also announced further costcutting measures totalling A$1.5 billion (€874 million) over three years, but the group baulked at giving a profit outlook, saying business conditions were too uncertain. Qantas swung to a loss of A$93 million in the six months to June 30th from a profit of A$351 million a year ago. It was the first loss for a six-month period since 2003 and only the second since Qantas listed on the stock exchange in 1995.
Qantas chief executive, Irishman Alan Joyce, said there were signs of an improvement in passenger volumes and yields had stabilised at levels seen in the six months to June. For the year to June 30th, Qantas managed to eke out a pretax profit of A$181 million, down 87 per cent but beating analysts’ forecast of A$143.5 million. – (Reuters)
