Qantas Airways Limited · ASX:QAN
Qantas Airways — H1 2010 Earnings Presentation
10 slides from Qantas Airways's earnings presentation, February 2010
Slide 1: Qantas 1H10 Results Presentation: Highlights of Result - Financial
Qantas 1H10 Results Presentation Highlights of Result - Financial [ Qantas Group half year 2010 Statutory PBT is $90 million [ Qantas Group half year 2010 Underlying PBT1 is $267 million [ December 2009 Group yield recovered 16.5% from lows in August 2009 [ Operating cash flow $0.5 billion [ Cash ba
Slide 2: Highlights of Result - Operational; 1H10 Operating Environment
Highlights of Result - Operational [ Effective capacity management in Qantas and Jetstar [ Qantas reduced 9.6%, Jetstar increased 32.9% [ Qantas is Australia’s best on-time airline for 2009 [ Strong Jetstar growth in Japan, New Zealand and Asia [ Qantas/Woolworths loyalty alliance launched - 1 milli
Slide 3: Income Statement Summary; Cash Flow and Balance Sheet Summary
Income Statement Summary $M 1H10 1H09 VLY Revenue 6,909 8,068 1,159 Economic downturn, capacity reduction and lower yield Expenses 6,766 7,793 1,027 Capacity adjustments, lower fuel costs and cost initiatives Statutory EBIT 143 275 (132) Net finance costs (53) 13 (66) Lower interest rates on cash ba
Slide 4: Segment Performance; Qantas
Segment Performance 1H10 1H09 VLY $M $M $M Qantas 60 98 (38) Jetstar 121 43 78 Qantas Frequent Flyer1 157 73 84 Freight 17 49 (32) Jetset 5 17 (12) Corporate / Eliminations (53) (220) 167 Underlying EBIT 307 60 247 [ All segments profitable [ Record return for Jetstar and Qantas Frequent Flyer [ Red
Slide 5: Jetstar; Qantas Frequent Flyer
Jetstar [ First half underlying EBIT $121 million, up $78 million [ Continued strong growth [ 33%1 increase in capacity [ Largest low cost carrier in Asia – based on revenues [ Pan Asia strategy performing well [ World first low cost carrier alliance – Jetstar and Air Asia [ 217%1 growth in internat
Slide 6: Freight; Strategic Priorities for 2010
Freight [ First half underlying EBIT $17 million, down from $49 million [ Economic downturn impacted Freight demand [ Early signs of demand recovery in air freight market [ 24% year on year market growth in December 2009 [ Peak season demand strong – November to December [ Improving activity on Chin
Slide 7: International Business Improvement; Product and Configuration
International Business Improvement [ Wide ranging measures underway Network [ Capacity [ Best for Business QFuture [ Transformational change Alliances [ Deepening alliances and bilateral partnerships Jetstar Pan Asia strategy Product [ Reconfiguration of A380 and B747 13 Product and Configuration Co
Slide 8: Product and Configuration; Fuel Costs
Product and Configuration A380 Aircraft Medium term long haul fleet [ First class to remain on key routes to Four class A380 12 match demand – SYD,MEL (First, Business, Premium Economy, Economy) [ 12 A380 with four class configuration, Three class A380 8 remaining eight delivered with three (Busines
Slide 9: Underlying PBT; Change in Estimate of Aircraft Residual Values
Underlying PBT [ The principle of Underlying PBT is to remove the volatility caused by the accounting treatment in AASB 139 and match all hedge derivative gains and losses in the same reporting period as the underlying exposures [ The volatility resulting from AASB 139 cannot be forecast and does no
Slide 10: Outlook
Outlook [ Remaining uncertainty in the economic outlook, particularly in international markets, industry capacity, passenger and freight demand and high levels of volatility in fuel prices and exchange rates continue [ Passenger revenue in 2H10 is expected to be higher than 1H10 as yields continue t