Qantas Freight EBIT falls as group improves

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Qantas Freight’s earnings before interest and tax (EBIT) fall to 38 million Australian dollars ($27.3 million) in the six months up to 31 December 2015, despite the group seeing significant improvements.

The cargo division’s EBIT was down from 54 million Australian dollars in the same period of 2014 due to global weakness causing revenue to fall five per cent. Qantas Group’s underlying profit before tax increased to 921 million Australian dollars from 367 million Australian dollars in the same period of 2014.

Qantas chief executive officer, Alan Joyce says: “Without a focus on revenue, costs and balance sheet strength, this result would not have been possible.”

“Both globally and domestically, the aviation industry is intensely competitive. That’s why it’s so important that we maintain our cost discipline, invest to grow revenue, and continue innovating with new ventures and technology.”

For 2016, Qantas will not retire two Boeing 747-400s as it had originally planned, but will keep them as Qantas International transitions to Boeing 787-9s. Qantas Domestic will acquire three Fokker F100s for the Western Australian market, freeing up Boeing 737-800s for international services including Perth – Singapore and Brisbane – Christchurch.