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7 ANNUAL REPORT 2011
All segments of the Qantas Group were
protable, with the combination of Qantas,
Jetstar, Qantas Frequent Flyer and Qantas
Freight enabling us to deliver our best
performance since the Global Financial Crisis.
The exibility to generate revenue from
different parts of the business and different
market sectors has proved to be a major
asset. We have reported a substantially
improved result for Qantas driven by our
domestic and regional businesses, continued
revenue growth and record results for
Jetstar and Qantas Frequent Flyer.
Fleet
During the year the Qantas Group eet
expanded by 29 aircraft to a total of 283 at
30 June 2011, driven primarily by signicant
Jetstar growth and the acquisition of the
Network Aviation business.
Qantas
Qantas Airlines recorded Underlying Earnings
Before Interest and Tax (Underlying EBIT)
of $228 million, compared with $67 million
in the prior year.
During the year Qantas continued to invest
on behalf of our customers. We rolled out
faster, smarter check-in to all major cities
and selected regional airports. We continued
to deliver superior on-time performance in
the domestic market. We launched direct
ights from Sydney to Dallas/Fort Worth,
based on a strengthened partnership with
American Airlines, creating a new gateway
into North America for travelling Australians.
We undertook a comprehensive review of
loss-making Qantas International, with the
objective of turning around the business
and positioning it for a strong and viable
future. The review was predicated upon
Qantas continuing to be Australia’s
leading premium international airline,
a strengthened focus on alliances, removing
capital from non-performing parts of the
business, and participation in the Asian
market opportunity.
Jetstar
Jetstar achieved a record Underlying
EBIT of $169 million, up 29 per cent on
the prior year.
Since launching in 2004 as a domestic
low-fares subsidiary of the Qantas
Group, Jetstar has undergone a major
transformation. It is now one of the
leading pan-Asian low-cost carriers,
ying both short and long-haul services
with operations based in Australia,
New Zealand, Singapore and Vietnam.
Jetstar continued its investment in
innovations for customers, including
airport self-service technology, and
preparations for the introduction of
iPads as an inight entertainment
option. More than 50,000 Jetstar
MasterCards have now been issued.
Qantas Frequent Flyer
Qantas Frequent Flyer increased
Underlying EBIT to $342 million, a record
result. It is Australia’s leading loyalty
program and continued to bring on
board new partners and launch new
initiatives to enhance the value it
delivers to its 8 million members.
The business continued to deliver strong
and stable cash earnings, contributing
strongly to the Qantas brand portfolio,
and positioning Qantas as an aviation
leader in loyalty programs.
Qantas Freight
Qantas Freight Enterprises also delivered
an improved performance, with Underlying
EBIT of $62 million up 48 per cent on the
prior year, reecting the continuing
recovery in the air cargo market.
Looking ahead
No other airline in the world but Qantas can
say it has operated continuously for more
than 90 years, ying each and every year
since 1920. That is something for all
Australians to be proud of.
And it has a lot to do with being Australian.
Qantas has been part of the great opening
of Australia, and in many ways Qantas has
made it possible: by building a global
reputation for safety, by staying at the
leading edge of aviation technology, by
assuring Australians they can always count
on us for help, and by creating the best
network in Australia, linking rural and
regional towns to the great cities of the world.
The Qantas Group has always changed
and evolved in order to stay successful,
and over the coming years it will continue
to do so. With our two strong and
complementary airline brands we will
increasingly be looking to participate in
regional and global opportunities. That
is how we can strengthen our business,
attract and reward our customers, and
deliver for shareholders.
But some things about Qantas will
never change.
We will always be an Australian company,
owned by Australians, with the vast majority
of our operations based in Australia.
We will always call Australia home.
283 $249m
Aircraft in the
Qantas Group eet
Statutory Prot
After Tax
ALAN JOYCE