Qantas 2009 Annual Report Download - page 62

60 Qantas Annual Report 2009
Discussion and Analysis of Performance Summary (by Segment)
for the year ended 30 June 2009
Increase/
2009 2008 (Decrease)
QANTAS $M $M %
Revenue 11,710 12,971 (9.7)
Underlying EBIT 4 1,358 (99.7)
EBIT (77) 1,230 (106.3)
Total assets 12,263 12,406 (1.2)
•TheUnderlyingEBITforQantasAirlinestotalled$4million,adecrease
of $1,354 million.
•Netsignificantnon-recurringexpensesof$81millionreducedthe
reported EBIT to a loss of $77 million. Aircraft and investment write
downs were partially offset by the profit on sale of Qantas Holidays.
•Netpassengerrevenuedecreasedby9.2percentreflectingadecreasein
seat factor to 80.1 per cent and yield declines as a result of the global
economic downturn and reduction in passenger demand. Capacity
decreased in the international market as a result of shifting some services
to Jetstar and reduced flying. Domestically, QantasLink thrived on the
introduction of more Bombardier Q400 aircraft.
•Fuelcontinuedtobethelargestcostforthesegmentwithpriceincreases
offset by capacity reductions and fuel conservation measures.
•Manpowerandaircraftoperatingcostswerealsohigherthisyear
compared to last as a result of foreign exchange rates and price rises.
Increase/
2009 2008 (Decrease)
QANTAS FREQUENT FLYER $M $M %
Revenue 1,133 849 33.5
Underlying EBIT 226 128 76.6
EBIT 310 128 142.2
Total assets 2,616 2,381 9.9
•TheincreaseinUnderlyingEBITof$98millionforQantasFrequentFlyer
is a 76.6 cent increase on the prior year.
•ThegrowthofUnderlyingEBITby$98million,representstheincreased
popularity of the program (and membership) from recent enhancements
and alliances.
•EBITtotalled$310million,whichincludesa$147millionbenefitfrom
the change in accounting for frequent flyer revenue. Of this benefit,
$84 million is non-recurring.
Increase/
2009 2008 (Decrease)
JETSET TRAVELWORLD GROUP $M $M %
Revenue 145 99 46.5
Underlying EBIT 16 19 (15.8)
EBIT 16 19 (15.8)
Total assets 364 240 51.7
•JetsetTravelworldGroupbecamepartoftheconsolidatedgroup
on 25 July 2008. The prior year comparatives represent the Qantas
Holidays business only.
Increase/
2009 2008 (Decrease)
JETSTAR $M $M %
Revenue 1,851 1,564 18.4
Underlying EBIT 107 102 4.9
EBIT 126 102 23.5
Total assets 796 678 17. 4
•JetstarrecordedanUnderlyingEBITof$107million,anincreaseof
$5 million.
•ReportedEBITincreasedto$126millionduetoa$19millionnon-recurring
write back of an impairment provision from a previous year upon the
change in ownership of Jetstar Asia.
•Passengerrevenueincreasedby17.6percent,largelydrivenbyexpansion
across both the domestic and international networks. Load factors and
yield improved across Jetstar contributing to the revenue improvement.
•Thegrowthofthenetworkincreasedcostsparticularlyinmanpower,
fuel and aircraft operating costs, however foreign exchange rates also
adversely affected costs.
•TheGroupincreasedits’percentageownershipinJetstarAsiawhichis
now consolidated in the Jetstar segment result.
•EquitylossesfromJetstarPacificincreasedfrom$3millionto$15million.
Increase/
2009 2008 (Decrease)
QANTAS FREIGHT $M $M %
Revenue 1,080 1,141 (5.3)
Underlying EBIT 7 79 (91.1)
EBIT (15) 79 (119.0)
Total assets 672 715 (6.0)
•TheFreightsegmentrecordedanUnderlyingEBITof$7million,adecrease
of $72 million.
•Anon-recurring$22millionimpairmentofgoodwillreducedEBITtoaloss
of $15 million.
•Theglobaleconomicdownturnandcapacitycutsacrossthenetwork
contributed to the 5.3 per cent decline in the segment revenue.
•Operatingcostsacrossthesegmentwereinlinewithreducedcapacity,
however foreign exchange fluctuations adversely affected costs.