Qantas back in black as profit doubles and international losses fall

AUSTRALIA's largest airline, Qantas, which formed an alliance with Emirates Airline this year in an effort to trim losses on international routes, has announced a net profit of A$6 million (US$5.4 million) for the 2012/13 financial year compared to a net loss of A$244 million a year ago.

As well as cutting unprofitable international routes, Qantas has been shedding jobs, reducing capital spending and selling assets to cut debt. It announced it would sell its Qantas Defence Services unit, which provides logistics support for the Australian government and military, to Northrop Grumman Corp for A$80 million.

Qantas said underlying profit before tax rose to A$192 from A$95 million a year ago. Underlying operating losses on its international arm halved to A$246 million, while profits on domestic earnings fell 21 per cent to A$365 million, according to Reuters.

Qantas said the operating environment remained tough and volatile, with aggressive competition in the Asia-Pacific region in particular.

"No group profit guidance is provided at this time due to the high degree of volatility and uncertainty in the competitive environment, global economic conditions, fuel prices and foreign exchange rates," the company said in a statement.