Qantas 8216 on course 8217 to hit pre tax profits

Qantas has announced that it is close to delivering pre-tax profits for the first time this year.

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By :  ,  Financial Analyst

Shares in the Australian airline Qantas grew by 3.64 per cent on Friday (October 24th) after the company announced that it was close to posting its first pre-tax profit of the year.

Qantas' share price grew to 1.42 at 16:10 AEST on Friday as the national carrier looked to continue its recovery. The firm had previously reported a net loss of A$2.8 billion (£1.6 billion) for the 12 months to June, the biggest annual loss in its history, but it is now making small steps to rectify the issue.

In a report filed to the Australian Stock Exchange, Qantas chief executive Alan Joyce said that the company was on course to deliver a pre-tax profit in the three months to September, the first time it has been able to do so this year. Mr Joyce also noted that Qantas' passenger numbers had increased 2.7 per cent during September, compared to the same period a year ago.

Speaking to shareholders at Qantas' annual general meeting, Mr Joyce said: "On the back of the hard work of the people of the Qantas Group, we are on track to deliver an underlying profit for the first half of the financial year.

“So the transformation programme, coupled with a more benign operating environment, is delivering clear results. Overall, and over the long term, the Qantas Group benefits from the lower Australian dollar. It is already helping our business."

Qantas recently announced the launch of the world's longest non-stop flight. The mammoth 15 hour and 30 minute service travels across 13,804 kilometres from Sydney to Dallas. Operated by Qantas' A380 aircraft, there will be six of these super long haul flights which are popular with business travellers.

The Australian carrier also added that first class will be offered for the first time on this service, providing an extra level of comfort.

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