Qantas workers, shareholders to benefit from $975M profit

THE Flying Kangaroo is reporting ‘robust’ profits from all its divisions, with CEO Alan Joyce set to share the spoils of the airline’s $975 million profit with staff.

QANTAS shareholders and employees will get to share in the spoils of the airline’s $975 million underlying profit for 2014-15.

The Qantas Group has announced the outstanding result today and a $789 million statutory profit, a year after posting its worst loss on record of $2.8 billion last year.

A “best ever” second half performance has been credited with all segments of the group returning “robust” profits including $480 million for Qantas Domestic, $267 million for Qanats International and $230 million for Jetstar.

Masterful turnaround ... Qantas Group CEO Alan Joyce has overseen a $1.6 billion turnaround in the airline’s financial performance. Picture: Brendon Thorne/Bloomberg via Getty Images

Shareholders will get the first returns on their investment in seven years, with Qantas to pay a capital return of $505 million equivalent to 23 cents a share from early November.

Employees will also be rewarded in the form of $90 million worth of bonuses for those who have endured an 18-month pay freeze.

The full year results also include confirmation of a Dreamliner order for the airline.

The first of eight new 787-9 aircraft will be delivered in early 2017, replacing five older Boeing 747s.

New planes on their way ... Qantas will order eight new Dreamliners to replace the ageing 747s. A380s (pictured) will remain in the fleet for now. Picture: Supplied by Qantas

Qantas Group CEO Alan Joyce said the business had been “reshaped for a strong, sustainable future”.

“We are halfway through the biggest and fastest transformation in our history,” said Mr Joyce.

“Without that transformation we would not be reporting this strong profit, recommencing shareholder returns or announcing our ultra-efficient Dreamliner fleet for Qantas International.”

As well as the transformation program, Mr Joyce acknowledged the contribution of the lower fuel price, the repeal of the carbon tax and higher revenue per available seat kilometre to the result.

Qantas Loyalty achieved a $315 million underlying profit, and Qantas Freight, $114 million.

Mr Joyce said Qantas employees had made sacrifices to help achieve the turnaround, and he thanked them for that.

Winners ... Qantas employees will share in $90 million worth of bonuses. Picture: Supplied

“No other company in Australia has people with more pride, more belief and more commitment than those who go to work for Qantas each day,” he said.

“Everyone at Qantas made sacrifices as we worked through changes across our business.

“Our people should take great satisfaction in what we are achieving together.”

The Dreamliner order would help “unlock opportunities for Qantas”, Mr Joyce said.

“When our red-tail Dreamliners start arriving in two years time, their incredible range and fuel efficiency will create new possibilities for our network,” he said.