When asked whether the airline would impose a data limit on downloads or whether it would block chat services such as Skype – no one wants to hear passengers yabber away for the length of a five-hour flight from Sydney to Perth – a Qantas spokesperson said everything is on the table.
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Australian carrier Qantas today said first-half net profit soared 234% on the back of belt-tightening and lower oil prices as it announced a A$500 million stock buyback to share the spoils with investors.
“Considering the position Qantas International was in just a few years ago, this turnaround is remarkable”, he said.
More than any other company, Qantas was expected to deliver the blow-out-the-lights result in this reporting season.
Under an MOU brokered between the two parties, Qantas has selected ViaSat’s Ka-band antenna for its Boeing 737-800 and the hybrid Ku-Ka antenna – an Asia-Pacific first – for its Airbus A330-200 fleet, which flies both domestically and internationally.
Qantas has reported a record half year profit of A$921 million (NZ$1.069b) for the past six months, boosted by A$488 million in fuel savings. It was also a little above the consensus estimates of financial analysts.
“This record result reflects a stronger, leaner, more agile Qantas”. “That’s why it’s so important that we maintain our cost discipline, invest to increase revenue, and continue innovating with new ventures and technology”.
Effective fuel hedging saw the group gain a $A448 million first-half benefit from fuel hedging that allowed it to take advantage of lower global fuel prices.
The group also provided an update on its AU$2 billion transformation program, which was launched in early 2014.
Qantas recorded a $448 million benefit from fuel prices, higher than expected.
While Qantas did not provide financial guidance for the rest of 2015/16, the company did outline some capacity forecasts.
And they are expected to present two very different stories.
Revenue increased by 5 per cent to $A8.
“Qantas will continue to assess its capital structure ahead of its full-year results and determine whether and how to distribute surplus capital at that point”, Qantas said. This will mean passengers will be able to check their emails, use social media, and stream live sports, movies, and TV shows on board any domestic flight.
Qantas will partner with ViaSat to develop an industry-leading wi-fi service across its domestic fleet, harnessing the NBN network.
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“The challenge of providing on-board Wi-Fi in a country as vast as Australia can’t be underestimated”, Joyce said, who added providing broadband services while in-flight has been an ambition for the company for some time. “But with this new technology, we can deliver speeds in the air that people usually expect on the ground”, he said.
