Qantas Airways profits lower after oil prices rise

Qantas will hand its workers travel bonuses worth Aus$32 million. (Reuters)
Updated 22 August 2019

Qantas Airways profits lower after oil prices rise

  • The 99-year-old airline was hit by an Aus$614 million fuel bill increase and Aus$154 million in foreign exchange impacts

SYDNEY: Qantas Airways posted a 6.5-percent fall in annual net profit Thursday, attributing the slide in earnings to higher oil prices and a weaker Australian dollar.
Despite record revenues, the Australian flag carrier said its after-tax profit fell to Aus$891 million ($604 million), down from Aus$953 million the previous year.
The 99-year-old airline was hit by an Aus$614 million fuel bill increase and Aus$154 million in foreign exchange impacts.
But Qantas CEO Alan Joyce was upbeat about the results, which came on the back of healthy profits the previous year.
“Even with headwinds like fuel costs and foreign exchange, we remain one of the best-performing airline groups in the world,” he said.
In the 12 months to June 30, underlying profit before tax — the airline’s preferred measure that strips out one-off costs — was down 17 percent at Aus$1.3 billion.
Qantas declared a final dividend of 13 cents per share and announced an off-market buyback of up to 79.7 million shares.
It will also hand its workers travel bonuses worth Aus$32 million.
Joyce said the outlook for the airline was “mixed,” with weakness in the domestic tourism market and flat corporate travel demand.
Nevertheless, he said the airline was “confident” about the year ahead due in large part to being in a “strong financial position.”


Japanese officials cautious on prospects for US trade deal

Updated 17 September 2019

Japanese officials cautious on prospects for US trade deal

  • A long-sought trade pact with Japan was scrapped when Donald Trump withdrew the US from a pan-Pacific trade agreement shortly after taking office in 2017
  • Trump said he preferred that Washington and Tokyo strike a bilateral deal

TOKYO: Officials in Japan appeared wary over the prospects for a trade deal with the US after President Donald Trump said he was prepared to sign a pact soon.
Japan’s chief government spokesman, Yoshihide Suga, said Tuesday that the two sides are still finalizing details after reaching a basic agreement in late August on trade in farm products, digital trade and other industries.
Suga said Trump and Prime Minister Shinzo Abe are considering signing a deal in late September when they attend the UN General Assembly in New York.
“We are accelerating the work that still remains,” he said. “But I decline to comment further because we have not reached a formal agreement.”
Trump’s notice to Congress, released by the White House on Monday, did not mention tariffs on autos and parts, long a sticking point between the two countries.
It said his administration was looking forward to collaborating with lawmakers on a deal that would result in “more fair and reciprocal trade” between the two countries.
Toshimitsu Motegi, who became foreign minister last week after negotiating the deal as economy minister, said Japan must watch carefully to prevent Washington from forcing any last-minute changes, Kyodo News agency reported.
The agricultural minister, Taku Eto, cautioned against letting down Tokyo’s guard until the final agreement is reached, it said.
A long-sought trade agreement with Japan was scrapped when Trump withdrew the US from a pan-Pacific trade agreement shortly after taking office in 2017.
Japan and the other 10 remaining members of the trade pact, the Trans-Pacific Partnership, then renegotiated their own deal without the US
Trump said he preferred that Washington and Tokyo strike a bilateral deal.
That resurrected the longtime issue of tariffs on Japanese car and auto parts exports to the US and of stiffer duties on US exports of farm and other products to Japan.