Qantas posts massive profit, buys 787s

The future of Qantas International is guaranteed after the airline announced it was buying eight of the world’s most advanced aircraft - the 300-seat Boeing 787-9s in Sydney this morning.

Qantas also has 15 options and 30 price rights on the 787.

The announcement came as the airline posted an underlying profit before tax of A$975 million – a thumping $1.62 billion turnaround on last year’s record underlying loss of $646 million loss as a raft of cost efficiencies started to pay big dividends.

Qantas has also booked a cost savings from lower fuel costs and the elimination of the carbon tax which was costing it $120 million a year.  

The Boeing 787, which with its competitor the Airbus A350, is the world’s most technologically advanced aircraft will be delivered from 2017.

Qantas will also use it on domestic transcontinental routes to Perth.

Boeing’s 787 is one the most flexible and economical aircraft flying today which will enable Qantas to open new routes and return to services that have been abandoned over the past 10 years such as Perth to Tokyo.

The national carrier will acquire eight B787-9s to gradually replace five of its older Boeing

747s on Qantas International routes and open up a range of potential new city pairs.

Four B787-9s will arrive in financial year 2018 and four will arrive in financial year 2019. This will leave the Qantas Group with its six youngest reconfigured B747s.

The airline also announced that it has reduced net debt by A$1.1 billion since financial year 2013.

Chief executive Alan Joyce said the Dreamliner’s advantages for Qantas’ people and customers were hugely exciting.

“This milestone acquisition marks the scale of our turnaround and looks ahead to a new era for our iconic international airline,” Mr Joyce said.

“We’re halfway through the biggest and fastest transformation in our history. Qantas is rapidly growing fitter, stronger, and smarter. These aircraft are a fitting emblem of that evolution – they show that we are revitalised and here for the long haul.

“We have looked closely at every aspect of the Dreamliner and it’s the right aircraft for Qantas’ future.

“The key reason we chose this particular aircraft is its incredible efficiency. It’s new technology will reduce fuel burn, cut heavy maintenance requirements and open up new destinations around the globe.

“Because the 787 is smaller than the jumbos it will gradually replace, it gives us the flexibility of having more aircraft without significantly changing our overall capacity.

“Every Qantas aircraft is a symbol of Australia and these aircraft will represent Australian excellence and ambition on a global scale.”

The airline also announced that it is declaring dividend to shareholders of A$505 million or 23 cents per share.