Qantas 2012 Annual Report Download - page 24

FOR THE YEAR ENDED 30 JUNE 2012
Review of Operations continued
Qantas
— Underlying EBIT $(21) million
— $404 million QFuture benefits
— Impact of industrial dispute and increase in fuel price
— Revenue and capacity growth
— Continued domestic strength
— Improved domestic performance on last year
— Superior on-time performance22
— Domestic fleet renewal
— High levels of customer satisfaction
— Strategic growth of QantasLink
— Expansion of fly-in fly-out business
— Qantas International Transformation on track
June
2012
June
2011 Change
%
Change
Total Revenue and Other Income $M , ,  
Seat Factor % . . (.) pts (.)
Underlying EBIT $M ()  () >()
Qantas’ Underlying EBIT was $(21) million for the year ended 30 June 2012, a decrease of $249 million on the prior year. The result
was impacted by the $194 million financial impact of the industrial dispute and a 19 per cent increase in average USD fuel prices.
Qantas achieved $404 million of QFuture benefits in the year, culminating in a total $1.4 billion over three years.
Domestically, Qantas achieved a higher Underlying EBIT relative to 2010/2011. The result was achieved by building on the existing
fundamental domestic network advantage and delivering the best average on-time performance of any major Australian domestic
airline for the last three years.
Qantas aims to provide the world’s best domestic travel experience. This is supported by continued investment in its award-winning
product and service offering. Faster, smarter check-in technology has now been rolled out at all major capital city ports, a wide
range of regional ports and for many trans-Tasman services.
The domestic fleet renewal program continues with the introduction of B737-800 NG (next generation) aircraft, new in-seat
entertainment and the trial of Q-streaming on some domestic routes.
Domestic customer satisfaction is at its highest level in over three years. These results have been recognised by continued customer
support. 48 new large-market corporate accounts have been signed, including nine won back as preferred airline, and 171 renewed
during the year. Despite aggressive competition only four large-market corporate accounts have been lost.
QantasLink made a significant contribution to Qantas’ domestic performance. Capacity growth of 7 per cent was supported by
investment in new aircraft and enhanced scheduled network services. QantasLink was awarded ‘Regional Airline of the Year’ 2012
by Air Transport World magazine.
In addition there was investment in Network Aviation’s fly-in fly-out business with the addition of 10 F100 aircraft to support
Australia’s resource sector.
Internationally, Qantas remains an iconic business operating the flagship aircraft of the Qantas fleet. The fleet renewal program
was substantially completed during the year and Qantas continues to operate a modern international fleet with consistent
award-winning product offerings.
Qantas’ International Transformation program has been initiated to improve business economics and transform the cost base in order
to develop a strong and viable business. This will be achieved by enhancing customer offerings to provide the best service for global
travellers, building on existing partnerships and new alliances, and ongoing business improvement initiatives to reduce the cost base.
22 Source: June 2012 BITRE data, Qantas most on-time major domestic airline for jet operations greater than 10,000 sectors.
QANTAS ANNUAL REPORT 2012022