Qantas profit up 15 per cent to $980 million.
Qantas profit up 15 per cent to $980 million.

Flying high: Qantas posts record profit

QANTAS has posted a 14.9 per cent jump in annual profit off the back of a strong result in its domestic business budget airline Jetstar.

The national carrier's statutory net profit came in at $980 million for the 2018 financial year, while its underlying profit before tax - its preferred reporting measure - increased by 14 per cent to $1.6 billion.

Total revenue increased 6.2 per cent to $17.06 billion. Earnings at Qantas Domestic were 19 per cent higher at $768 million, Qantas International was up 7 per cent to $399 million, Jetstar was up 11 per cent to $461 million and Qantas Loyalty was up 1 per cent to $372 million.

"These numbers show a company that's delivering across the board," Qantas chief executive Alan Joyce said in a statement.

Qantas CEO Alan Joyce. Picture: Hollie Adams/The Australian
Qantas CEO Alan Joyce. Picture: Hollie Adams/The Australian

"Our investment in free Wi-Fi and cabin improvements are delivering a better experience for customers as well as higher earnings for Qantas and Jetstar. The overall value for the travelling public remains extremely strong, with domestic sale fares almost 40 per cent lower in real terms than they were 15 years ago."

Qantas will pay a final, fully franked dividend of 10 cents per share, up three cents on last year. The company also announced a $332 million share buyback.

Mr Joyce said the record result came despite higher oil prices, with the airline's fuel bill expected to increase by around $690 million this year to $3.92 billion.

"We're confident that we will substantially recover this through a range of capacity, revenue and cost-efficiency measures, in addition to our hedging program," he said.


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