Qantas is set to make the second highest profit in its history during 2017 despite a “tough” international market.
The Australian airline said that it expects to make an “underlying” pre-tax profit of between £770 million and £800 million during the current financial year, which would make it the second most profitable year for Qantas after 2016.
Qantas CEO Alan Joyce said: “Last year we posted the highest earnings in Qantas’ history and our guidance today would make this year’s underlying profit the second best in almost 100 years. It shows we’re able to keep performing in a mixed global environment.
“Internationally it’s still tough, with high levels of capacity growth pushing fares down, but we’ve seen those conditions ease slightly. Because of the work we’ve done to transform Qantas and expand into growth markets, our international businesses are navigating the headwinds better than our key competitors.”
Qantas International increased capacity by 4.8 per cent during the last quarter, mainly through new routes to Asian destinations.
Other developments include putting on sale the first non-stop flights between London and Perth, which start in March 2018, as well as new lounges in Brisbane and offering free wifi on its domestic network.