ONGOING protests in Hong Kong are set to dent the first half profits of Qantas by $25 million, according to the carrier’s latest trading update.
The airline will continue its strategy of reducing capacity in a bid to minimise the financial impact on second-half results.
Meanwhile, despite weaker market conditions resulting from higher foreign exchange expenses, Qantas recorded $4.56 billion in Total Group Revenue for the first quarter of FY20, a 1.8% jump on the previous corresponding period.
Group Unit Revenue also increased by 2.1% during the same quarter, while Group International Unit Revenue rose by 4.4%.
Qantas Group CEO Alan Joyce said the positive revenue results for the quarter showed the carrier was well positioned to respond to continued mixed market conditions.
“The group continues to perform well, with strength in key parts of our portfolio helping to offset softness in other areas,” Joyce said.
Jetstar International also grew its revenue for the quarter, helped by a strong demand on leisure routes to Asia, with its capacity increasing on the back of more short-haul flights to Bali.
In terms of passengers carried during the period, Qantas Group flew a total of 14.34 million guests, an increase of 1.7% on the previous corresponding period.
The biggest jumps were recorded by Jetstar Asia which boosted passenger numbers by 5.1%, followed by Jetstar International with 3.3%, and Jetstar Domestic with 1.9%.
Qantas flagged cost reduction as a key focus for the next quarter.
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Source: traveldaily