Qantas has returned to profit during the last financial year as it reduced the losses from its international operations.
The Australian airline made a pre-tax profit of Aus $17 million (£9.8 million) for the year to the end of June – compared to a loss of Aus $349 million (£200 million) during the previous year.
Over the same period, Qantas saw revenue rise by 1 per cent to Aus $15.9 billion (£9.2 billion) while underlying pre-tax profit (which excludes one-off costs) more than doubled to Aus $192 million (£110 million) compared to Aus $95 million (£55 million) in 2011/12.
The company was boosted by a halving of losses for its Qantas International unit which recorded a deficit of Aus $246 million (£140 million) during the year.
Qantas CEO Alan Joyce said that the international business remained “on track” to return to profit in 2015 as previously forecast.
The airline has made a major change this year after starting a 10-year partnership with Emirates in April which also saw the end of its 17-year joint venture with British Airways.
“The Qantas-Emirates partnership gives the group a strengthend position on routes to Europe, the Middle East and North Africa via the global hub of Dubai,” added Joyce.
Joyce said that the early signs for the Emirates partnership were “promising” and that it would “bed down” during the next financial year.
“It gives us a clear network advantage over our competitors to London and Europe, and it is performing strongly, in line with our expectations,” he added.
“We saw a surge in bookings when the partnership went on sale, reflecting latent demand. Since then bookings have stabilised and continue to be very strong.
"Codeshare bookings by Qantas customers on Emirates’ network are running at about twice the level of our previous network to Europe – which included BA, Cathay, Air France and Iberia.”
qantas.com.au