Qantas 2009 Annual Report Download - page 60

58 Qantas Annual Report 2009
Discussion and Analysis of Performance Summary
for the year ended 30 June 2009
REVIEW OF INCOME STATEMENT
•Profitbeforerelatedincometaxexpense(PBT)was$181million,a
decreaseof$1.2billionor87.1percent.Profitattributabletomembersof
Qantaswas$117million.Thiswasachieveddespitea1.9percent
decreaseincapacityandadecliningdemandenvironmentinboth
domesticandinternationalmarketsaswellasstrongcompetition.
•Anumberofsignificantitemswereincludedintheresultsfortheyear.
TheseitemsincludedaprofitonsaleofQantasHolidaysof$86million,
achangeinFrequentFlyeraccountingestimateswhichincreased
revenueby$164million,ofwhich$84millionisnon-recurring,
redundanciesof$106millionandaccelerateddepreciationand
impairmentlossesof$170million.
REVIEW OF SALES AND OTHER INCOME
•Totalsalesandotherincomefortheyeardecreasedby$1.1billionto
$14.6billion,adecreaseof6.9percentontheprioryear.
•Netpassengerrevenuedecreasedby$1.1billionor8.7percentto
$11.6billion.Thisreflectedcapacityreductionsof1.9percent,aseat
factordecreaseof1.1percentagepointsandayieldreductionof
4.3percentprimarilyreflectingthedeclineinpremiumandbusiness
traveldemand.
•Netfreightrevenuedecreasedby$195million,or20.3percentto
$764million.Reducedcapacityaswellaslowertradeactivityduetothe
economicdownturncontributedtothedecline.
•Otherrevenuecategoriesincreasedby$225millionto$2.2billion.
ThiswasprimarilyduetotheprofitonsaleofQantasHolidaysand
changesinaccountingestimatesforQantasFrequentFlyer.
REVIEW OF EXPENDITURE
•Manpowerandstaffrelatedexpenditureincreasedby$151millionor
4.3percentto$3.7billion.RedundanciesandEnterpriseBargaining
Agreement(EBA)increaseswerethemaincontributorstothisincrease.
•Aircraftoperatingvariablecostsincreasedby$226millionor8.7percent
to$2.8billionlargelyduetoincreasesinlandingfeesandengineering
materialspricerises.
 2008
 $M %
Currentassets  5,616 6.2
Non-currentassets  14,084 <0.0
Totalassets  19,700 1.8
Currentliabilities  7, 604 (11.7)
Non-currentliabilities  6,361 19.0
Totalliabilities  13,965 2.3
 5,735 (0.5)
Netdebttonetdebtplusequity(ratio)  24:76
NetdebttonetdebtplusequityincludingoffBalanceStheetdebt(ratio)  46:54
REVIEW OF EXPENDITUREcontinued
•Fuelcostsdecreasedby$99millionor2.7percent.Increasesintheinto-
planefuelpriceafterhedgingwerelargelyoffsetbyfavourableforeign
exchangemovements.Thevolumeofbarrelsconsumeddecreasedby
3.5percentinlinewithlessflyinghoursfromcapacityreductions.Fuel
conservationandothersavinginitiativesof$62millionalsocontributed
tothedecreaseinfuelcosts.
•Otherexpendituredecreasedby$5millionor0.2percent.Sellingand
marketingsavingswereoffsetbyincreasedpropertycosts,capacityhire
andcommunicationcosts.
•Depreciationandamortisationcostsdecreasedby$79millionor5.4per
cent,mainlyduetodepreciationsavingsonaircraftwrittendowninthe
prioryearandaone-offmaintenanceaccountingchargeforQantasLink
aircraftintheprioryear.
•Non-cancellableoperatingleasechargesincreasedby$50millionor
12.5percentasaresultofunfavourableforeignexchange,aswellasan
increaseinthenumberofleasedaircraft.
•Theshareofnetloss/(profit)inassociatesandjointlycontrolledentities
decreasedby$43milliontoa$15millionloss.LowerearningsfromAir
PacificandJetstarPacificwerethemaincontributorstothischange.
REVIEW OF OTHER INCOME STATEMENT ITEMS
•Ineffectiveandnon-designatedderivativesresultedingainsof
$105millioninthecurrentyearcomparedto$55millionoflosseslastyear.
•Netfinancecostsincreasedby$68million,primarilyduetoalowercash
interestratesreducinginterestincome.
•Theeffectivetaxrateincreasedfrom31.1percentto32.0percent.
•Basicearningspersharedecreasedby43.4centsto5.6centspershare.
Thisreflectedthedecreasedprofitaftertaxfortheyearandincreased
numbersorsharesonissue.
continued
•Fuelcostsdecreasedby$99millionor2.7percent.Theinto-plane
fuelpriceafterhedgingincreasedby8.5percentandaccountedfor
$149millionoftheincreaseincosts.Thevolumeofbarrelsconsumed
decreasedby3.5percentinlinewithlessflyinghoursfromcapacity
reductions.Fuelconservationandothersavinginitiativesalsocontributed
tothedecreaseinfuelcostsof$62million.FluctuatingAustralian
currencymovementsincreasedfuelcostsbutwerenettedoffbyhedging
toprovideanetbenefitof$93million.
•Otherexpendituredecreasedby$29millionor1.1percent.Sellingand
marketingsavingswereoffsetbyincreasedpropertycosts,capacityhire
andcommunicationcosts.TheprioryearincludedFXlossescomparedto
thecurrentyeargainsclassifiedinotherrevenue.
•Depreciationandamortisationcostsdecreasedby$79millionor5.4per
cent,largelyduetothewritedownofaircraftintheprioryearnolonger
beingdepreciated.
•Non-cancellableoperatingleasechargesincreasedby$50millionor12.5
percentasaresultofunfavourableFXandpricing,despiteloweractivity.
•Theshareofnetprofit/(loss)inassociatesandjointlycontrolledentities
decreasedby$43milliontoa$15millionloss.LowerearningsfromAir
PacificandJetstarPacificinvestmentswerethemaincontributors.
•Themark-to-marketopenderivativepositionsoncapitalexpenditure,
requiredunderAASB139,resultedinineffectivederivativegainson
capitalexpenditureof$110millioninthecurrentyearcomparedto
$39millionoflosseslastyear.
•Netfinancecostsincreasedby$68million,primarilyduetoalowercash
interestratesreducinginterestincome.Aslightincreaseinfinancing
costscontributedtotheincrease.
•Thefavourablenetimpactofforeignexchangeratemovementson
overallPBTwas$98million.
•Theeffectivetaxrateincreasedfrom31.1percentto32.0percent.
Basicearningspersharedecreasedby42.5centsto6.5centspershare.
Thisreflectedthedecreasedprofitaftertaxfortheyear.