Qantas yesterday insisted that the worst of its financial woes are behind it and that it will post an underlying profit for the second half of the year, despite unveiling an A$2.84 billion (Dh9.76bn) annual loss.
The Australian airline, which signed a partnership with Dubai's Emirates Airline in 2012, said that the loss for the year ending June 2014 was largely attributable to a A$2.56bn writedown of the value of its Boeing 747 fleet.
However, Qantas’s losses before tax and one-time writedown items stood at A$646m, lower than analyst expectations.
“There’s no doubt that today’s numbers are confronting,” said the airline’s chief executive Alan Joyce. “But they represent the year that is past, and we have now come through the worst.”
The market responded favourably to the company’s results. Qantas shares rose by 7 per cent yesterday, the stock’s largest one- day gain of the year, closing at A$1.385, its highest close in more than two months.
Australia's national carrier has struggled in recent years in the face of increasing pressure on its long-haul business, together with cut-throat price competition in its domestic market with Virgin Australia, part-owned by Etihad Airways.
Mr Joyce said there were grounds for optimism in the year to come thanks to a “clear and significant easing of both international and domestic capacity growth, which will stabilise the operating environment”.
A A$2bn cost-cutting and restructuring initiative launched by the airline in February had already started to bear fruit, said Mr Joyce. He added that the airline would return to pre-tax profit in the six months to the end of December, “subject to factors outside our control”.
The cost-cutting measures already outlined include the laying off of 5,000 staff, scrapping a number of international routes and deferring new aircraft orders.
Such changes were positive but overdue, according to Will Horton, senior analyst at Sydney-based Capa – Centre for Aviation.
“The restructurings over the last few years have addressed long-standing problems that were not touched when international and domestic competition was significantly lower,” he noted.
As part of such restructuring efforts, the airline announced yesterday it was carving out its international division into a separate entity, with a view to attracting foreign investment.
The move comes after the Australian government relaxed laws restricting outside ownership in the airline to 25 per cent, with foreign investors now able to own up to 49 per cent.
“Given the amount of competition and the position that Qantas finds itself I find it difficult to imagine that whatever plan Mr. Joyce now puts forward to investors in terms of turning the airline around is likely to succeed without having an external partner alongside,” said Howard Wheeldon, an independent airline analyst.
That has fuelled speculation that Emirates could emerge as such a candidate. However, analysts have downplayed the likelihood of that happening.
“Qantas’s entire international division, which is unprofitable, is one-fifth the size of Emirates, which is profitable. Getting into the financial affairs of others, with uncertain upside, risks being a distraction from Emirates’ own organic growth,” said Mr Horton.
jeverington@thenational.ae
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UAE currency: the story behind the money in your pockets
Zayed Sustainability Prize
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Fund-raising tips for start-ups
Develop an innovative business concept
Have the ability to differentiate yourself from competitors
Put in place a business continuity plan after Covid-19
Prepare for the worst-case scenario (further lockdowns, long wait for a vaccine, etc.)
Have enough cash to stay afloat for the next 12 to 18 months
Be creative and innovative to reduce expenses
Be prepared to use Covid-19 as an opportunity for your business
* Tips from Jassim Al Marzooqi and Walid Hanna
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
THE LOWDOWN
Photograph
Rating: 4/5
Produced by: Poetic License Motion Pictures; RSVP Movies
Director: Ritesh Batra
Cast: Nawazuddin Siddiqui, Sanya Malhotra, Farrukh Jaffar, Deepak Chauhan, Vijay Raaz
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
KILLING OF QASSEM SULEIMANI
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
More from Neighbourhood Watch
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Nag%20Ashwin%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EPrabhas%2C%20Saswata%20Chatterjee%2C%20Deepika%20Padukone%2C%20Amitabh%20Bachchan%2C%20Shobhana%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E%E2%98%85%E2%98%85%E2%98%85%E2%98%85%3C%2Fp%3E%0A
Turkish Ladies
Various artists, Sony Music Turkey
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
Veere di Wedding
Dir: Shashanka Ghosh
Starring: Kareena Kapoo-Khan, Sonam Kapoor, Swara Bhaskar and Shikha Talsania
Verdict: 4 Stars
MATCH INFO
Azerbaijan 0
Wales 2 (Moore 10', Wilson 34')
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RESULTS
Tottenham 1
Jan Vertonghen 13'
Norwich 1
Josip Drmic 78'
2-3 on penalties
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Abu Dhabi Sustainability Week
Brief scores
Day 1
Toss England, chose to bat
England, 1st innings 357-5 (87 overs): Root 184 not out, Moeen 61 not out, Stokes 56; Philander 3-46
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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Easter%20Sunday
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
MATCH INFO
Norwich 0
Watford 2 (Deulofeu 2', Gray 52')
Red card: Christian Kabasele (WatforD)
