Qantas flags second biggest profit on record

QANTAS CEO Alan Joyce is preparing to show his critics last year’s record profit was no fluke — flagging another billion dollar gain for 2017.

QANTAS is on track for its second biggest annual profit on record as fierce international competition showed signs of easing in the third quarter.

In a preliminary trading update for the quarter, the Qantas Group confirmed it expected to report a full-year underlying profit before tax, in the range of $1.35 to $1.4 billion.

Such a result would be only second to last year’s $1.5 billion profit — the biggest in the Flying Kangaroo’s 96-year history.

Qantas CEO Alan Joyce said the group’s quarterly performance had met expectations and laid the groundwork for another strong full-year result.

“Internationally, it’s still tough with high levels of capacity growth pushing fares down but we’ve seen these conditions ease slightly,” said Mr Joyce.

Qantas CEO Alan Joyce pictured with the new Qantas logo. Picture: Renee Nowytarger

“Because of the work we’ve done to transform Qantas and expand into growth markets, our international businesses are navigating the headwinds better than our key competitors.”

The Quarterly Market Update revealed a slight decline in revenue per seat on international routes, despite strong increases in the number of passengers carried and a 4.8 per cent capacity boost from new Asian routes.

Qantas Domestic, Jetstar and the Qantas Frequent Flyer program all delivered “solid earnings growth”, said Mr Joyce.

“Over the past three months, we’ve launched free Wi-Fi on our domestic network, opened new customer lounges in Brisbane and put the world-first Perth to London service on sale,” he said.

“These are all things that improve our position in a competitive market and encourage more people to choose Qantas.”

Originally published as Qantas flags second biggest profit on record