Qantas 2013 Annual Report Download - page 64

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During the year, Emirates and Malaysian Airlines were welcomed to Qantas’ airline partner network. The addition of Emirates gives
Qantas frequent yer members the ability to redeem points for 175 worldwide destinations across the Qantas and Emirates network.
Members’ tier status is recognised with both airlines when ying on the Qantas-Emirates network and Gold members (or above)
have access to global Qantas and Emirates lounges.
Qantas Loyalty expanded its international hotel group partners with the introduction of Jumeirah Hotel Group and Atlantis The
Palm Hotel, two of the largest hotel groups in Dubai. New nancial card products were launched with David Jones, Westpac and
Macquarie Bank.
QANTAS FREIGHT
»Increased revenue in a competitive environment
»Acquisition and integration of Australian air Express
»Sale of StarTrack
June
2013
June
2012 Change
%
Change
Total Revenue and Other Income $M 1,056 1,013 43 4
Revenue Load Factor47 %56.2 53.5 2.7 pts 5
Underlying EBIT $M 36 45 (9) (20)
Qantas Freight’s Underlying EBIT was $36 million, down $9 million on last year. This was driven by a 11 per cent reduction in
international freight capacity, mostly resulting from Qantas International network changes, partially offset by a three per cent
international yield improvement48 and implementation of the Emirates SkyCargo partnership.
In November 2012, Qantas Freight sold its share in StarTrack, resulting in a $30 million gain on sale (reected in net prot on
disposal of investment excluded from Underlying EBIT) and acquired the remaining share of Australian air Express. The integration
of Australian air Express is now underway, with expected completion in the 2013/2014 year, delivering signicant synergies and
creating Australia’s leading independent air freight provider. The consolidation of Australian air Express contributed to the
increasein revenue in the year.
RECONCILIATION OF UNDERLYING PBT TO STATUTORY PBT
The full-year ended 30 June 2013 Statutory PBT of $17 million is a substantial turnaround from a loss of $349 million
inthepriorperiod.
Underlying PBT
Underlying PBT is the primary reporting measure used by the Qantas Group’s chief operating decision-making bodies, being the
Chief Executive Ofcer, Group Management Committee and the Board of Directors, for the purpose of assessing the performance
ofthe Group. The primary reporting measure of the Qantas International, Qantas Domestic, Jetstar Group, Qantas Loyalty and
Qantas Freight operating segments is Underlying EBIT. The primary reporting measure of the Corporate/Unallocated segment
isUnderlying PBT as net nance costs are managed centrally.
Underlying PBT is derived by adjusting Statutory PBT for the impacts of AASB 139 Financial Instruments: Recognition and
Measurement (AASB 139) which relate to other reporting periods and identifying certain other items which are not included
inUnderlying PBT.
Review of Operations continued
FOR THE YEAR ENDED 30 JUNE 2013
47 Revenue Load Factor – Revenue Freight Tonne Kilometre (RFTK) over Available Freight Tonne Kilometre (AFTK).
48 International freight revenue per AFTK, excluding FX.