Australian carrier Qantas said it expects to report a “significant improvement” in profits for the six months to December.
The airline said improved revenue, cost cutting through its Transformation Programme and lower fuel prices has put it on course for pre-tax underlying profit of between $875 million and $925 million – This compares to $367 million in the first half of financial year.
Alan Joyce, CEO of the Qantas Group, said the anticipated first half result reflects strong performances from each of Qantas’ core businesses.
“We’ve seen improved revenue in our domestic and international operations, reduced costs across the Group through the Qantas Transformation program, and expect another record half-year result from Qantas Loyalty,” said Mr Joyce.
“This strong performance is underpinned by our continued focus on delivering the best service for our customers in all of the markets we serve.”
The airline is around halfway into a three-and-a-half year turnaround strategy, which includes stripping costs, freezing capacity and slashing 5,000 jobs. It came after Qantas announced record-breaking losses last year.
Qantas announces its first half results for financial year 2016 on February 23 2016.