Group chief executive Alan Joyce said the restructuring had made the airline more agile and created a platform for future investment.
Advertisement
Of the $500m capital return, $134m will be used to pay for its 7c a share final dividend, with the remainder to go to an on-market share buyback.
Earnings before tax and one-time items surged to A$1.53 billion (S$1.57 billion) in the 12 months ended June 30 from A$975 million a year earlier, the airline said in a stock exchange filing on Wednesday (Aug 24).
The company also said it will give staff a A$3,000 “record result bonus”.
Qantas shareholders will receive another $500 million of capital after Australia’s biggest airline delivered an 84.7 per jump in annual net profit to $1.03 billion, thanks to benefits from its operational overhaul and lower fuel prices. “This is a true team performance, which shows that our strategy is the right one for the tough markets we’re operating in and the long-term opportunities we see ahead of us”.
On Wednesday, Qantas said each of its main operating divisions – its domestic, global and discount carrier units, and its frequent flyer program – posted record underlying earnings.
Qantas said it has since hit Aus$1.66 billion in cost and revenue savings – including Aus$557 million in the financial year ending June 2016.
Jetstar’s underlying ebit was A$452 million, up 97 percent.
The airline said each of its main operating divisions – its domestic, worldwide and budget carrier subsidiaries – saw record underlying earnings for the past year. Passenger numbers rose to 2.1 million, up 21 per cent, while revenue per passenger kilometres is up 15 percent. Analysts had expected A$1.57 billion in profit.
Advertisement
Air New Zealand still has the lion’s share of the New Zealand domestic market – it carried nearly five million domestic passengers in the year to December 2015.
