As part of its business reorganisation last year, Qantas Freight Enterprises (QFE) was created to encompass the activities of Qantas Cargo and Express Freighters Australia, alongwith the Group’s equity investments in Star Track Express Holdings Pty Limitedand Australian Air Express Pty Limited.
The airline said that the move was aimed to position its portfolio businesses for greater growth and diversity outside their traditional aviation areas, and also provide alternative ownership options.
“QFE has reported a profit before tax of AU$64 million for the year ended June 30, 2008, which is AU$1 million down on the previous year,” it said in a statement.
1st paperless air cargo shipment
Qantas Freight announced recently that it had sent Australia’s first paperless air cargo shipment and was leading the local industry to have e-Freight in place nationally by 2010.
Qantas Freight Executive General Manager Grant Fenn said the first live paperless shipment had taken place less than three months after Australia was endorsed by the International Air Transport Association (IATA) board to join its e-Freight programme.
“This is an important milestone for the Australian air freight industry as it marks the beginning of the end for the current complex paper based processes. The ability to send paperless air cargo shipments will have significant financial and logistical benefits for the whole industry and will ultimately mean a faster and more secure service for customers.
“As an industry we are looking forward to the not too distant future where paperless cargo shipments are as common place as e-tickets for airline passengers. In line with IATA rules guiding its e-Freight program, Qantas Freight has facilitated a number of trial shipments and has successfully sent a live shipment from Australia to Singapore,” Fenn said.
“Qantas Freight has enjoyed the close support of industry participants in reaching this milestone. We will continue to lead the local industry to deliver IATA’s goal of having e-Freight in place at alllocations by 2010,” Fenn said.
Qantas posts profit despite enviro
In it’s most recent earnings results, the carrier appears to have defied the fuel crisis and global downturn to post a record A$969.7 million profit for the fiscal year 2008, but also warned shareholders not to expect a repeat in the current fiscal year.
Delivering his final profits result, outgoing chief executive Geoff Dixon said the airline had managed to fly above the fuel crisis that has crippled airlines. “This time last year was one of the sweetest spots in aviation,” Dixon said.
But the new year looks tough with pre-tax earnings expected to fall 41 per cent to A$825 million, down from A$1.36 billion.
Eight weeks into fiscal 2009, business was beginning to turn soft for Qantas, particularly at the leisure end, Dixon said. “There is a downturn,” he said, revealing that bookings in May and June had been bad for Jetstar, but last month had been good for the company.
The result handed down was helped by hedging the fuel price while the rising Australian dollar insulated costs. Both factors delayed the impact of the fuel price blow-out for all but the fourth quarter.
While Qantas carried more freight, internationally and within Australia, during the year to June 30, the airline, like every other company, is not optimistic about the coming months.
Revenue from freight, among others, and compensation for the late delivery of the new fleet of Boeing 787 Dreamliners totalled A$16.19 billion, up $1.3 billion on 2007-08, the airline said.
Boeing paid Qantas A$290.7 million to compensate for delays in aircraft delivery. After-tax earnings rose A$296 million above last year’s A$626.6 million result.
This was achieved in a year when jet kerosene topped all records, surging 111 per cent from July 1 last year to June 30.
At the same time Qantas paid just 8 per cent more for jet kerosene when the price in Singapore had surged from US$85.20 a barrel to US$179.83 by June 30. Th e cost of filling the tanks of the airline’s 230 jetliners totalled $3.6 billion, up $3 billion on last year.
This year’s fuel bill is expected to rise by more than A$1.6 billion, based on present prices.
The airline’s 36,000 workers, whose morale has slumped amid cost-cutting and a recent decision to retrench 1500 workmates, recently learnt they would share in the carrier’s improved fortunes.
Directors agreed to dispense a revival tonic to lift their spirits and eligible employees will get A$1,000 worth of shares plus A$1,000 cash. International business travel, especially US flights, were still holding up well although bookings on services to Singapore and Japan had fallen.
Qantas’ strength was in its flexibility as it used its two brands, Qantas and budget airline Jetstar, and its fleet to adjust as the environment changed, according to Dixon.
“The biggest determinant in this industry without a doubt is fuel and who would know where fuel could be in three years’ time,” he said.
