Qantas record profit - Well done QF!!

[flying1977]

Qantas just announced a record profit before tax of over $1,032 million, this just shows that the QF management know how to run a good company.

Well done QF! Look forward to hearing the expansion plans soon.

About Qantas - Newsroom

 

[simongr]

Hmm based on this:

Mr Dixon said the process included:

- finalising the review of the Frequent Flyer program, which was aimed at identifying options to drive greater customer benefits including a broadening of program partners, offering 'any seat' redemption and including a Jetstar loyalty program;


I dont think we should expect an announcement today on changes to the FF program...

 

[SeaWolf]

I think once DJ announces their program overhaul, we'll probably see QF follow quite quickly.

 

[NYCguy]

Qantas just announced a record profit before tax of over $1,032 million...

... Yep, those fuel-fines really add up!

 

[NM]

... Yep, those fuel-fines really add up!

I once started to calculate just how much they do earn each day from fuel fines. It certainly is a large number. Maybe one day when I am less busy I might again fire up the spreadsheet and see what it works out to be.

 

[simongr]

But dont forget that it will be gobbled up by increased fuel prices

 

[Alanslegal]

... Yep, those fuel-fines really add up!

Totally agree there!!

Let's see, If i'm running a business, say it's a french patisserie and I make the best croissants in the southern hemisphere which sells for $10 each......for 2007, the price of flour has gone up 20% due to the drought Australia-wide........there is no way in this world that I could advertise my croissants as $10 PLUS 20% flour fine?
so i either absorb the increase cost? OR increase my total price, say I increase it to $12 each.

so my grudge is this, not just with QF but most airlines - it's time to have all inclusive costs rather than flight cost + this and that + fuel fines + surcharge + bla bla bla

if fuel (or whatever inputs) goes up, absorb it or increase your total cost, just don't just add an extra $20 fuel sector charge or $30 or whatever & blame something else..........

 

[serfty]

But dont forget that it will be gobbled up by increased fuel prices

Is not the 'record profit' already taking increased fuel prices into account?

24 months ago Qantas were somewhat protected from increased fuel prices due to an effective hedging strategy.

 

[serfty]

Totally agree there!!

Let's see, If i'm running a business ...

Hmm, to extend the analogy, my Bakery has a loyalty plan that for every 12 items you purchase, you get a 13th as an award - Literally a "Baker's Dozen".

However, before you get that 13th item you must pay a flour fine of 20% the individual list item price.

 

[NM]

However, before you get that 13th item you must pay a flour fine of 20% the individual list item price.

Without any consideration given to whether the initial 12 were purchased before of after the Flour Fine was introduced .

I have no issue at all with QF making good profits. In fact I think it is a god thing and congratulate them on doing do. I do, however, have a major problem with the concept of fuel fines and firmly believe high fuel prices are with us for the long term and the proper way to manage fuel costs is to adjust the fare price and not to add a surcharge that is designed to make it look like its some sort of tax imposed by someone other than the airline. I find the concept of fuel fines to be dishonest representation of the fare structure.

 

[turtlemichael]

Hmm, to extend the analogy, my Bakery has a loyalty plan that for every 12 items you purchase, you get a 13th as an award - Literally a "Baker's Dozen".

However, before you get that 13th item you must pay a flour fine of 20% the individual list item price.

And you can only get that 13th one, even with its 20% flour fine, if some of the 9 people in the queue in front of you who regularly buy the more expensive French pattisserie items decide they dont want the extra loaf on this occasion.

Ain't I glad I subscribe to frequentbaker.com.au and therefore understand these things

 

[simongr]

Is not the 'record profit' already taking increased fuel prices into account?

24 months ago Qantas were somewhat protected from increased fuel prices due to an effective hedging strategy.

Yes the profit does - I was just commenting that if NM works out the value of fuel fines and then Crikey posts "QF makes $20billion per annum from fuel fines" once they google "fuel fines and qantas" we need to understand that QF's argument is that the $20billion is more than offset by the actual increased cost of fuel - we have no visibility of that though do we

 

[stryker]

Qantas just announced a record profit before tax of over $1,032 million, this just shows that the QF management know how to run a good company.

Well done QF! Look forward to hearing the expansion plans soon.

About Qantas - Newsroom

I think it's a bit strange to commend a company for having a near monopoly (aided and abetted by the federal govt) and then taking agressive advantage of it.

I suppose you also praise the banks for making $4bn+ profits...

 

[Evan]

You could easily argue they should not be charging so much if they make such large profits, but atleast we should be a little greatful that they are going well (protected or otherwise), since we get the benefit of actually haveing a world class airline serving our country.

Argue all you want about the prices and the perceived quality issues etc but travel to some other countries and fly there national airline and you may just start to think QF is not all that bad

Anyway its a public company, just like the banks, and we all know profits for shareholders are number 1 priority.

E

 

[jakeseven7]

I think it's a bit strange to commend a company for having a near monopoly (aided and abetted by the federal govt) and then taking agressive advantage of it.

I suppose you also praise the banks for making $4bn+ profits...

C'mon Virgin aren't that insignificant for QF to be labelled as having a near monopoly!

 

[dajop]

C'mon Virgin aren't that insignificant for QF to be labelled as having a near monopoly!

Nor are SQ, EK, MH, CX, UA, NZ or TG who do collectively provide a fair degree of competition internationally.

But do agree with all comments about the fuel fines, and the applies to all the airlines (perhaps excepting EK). Where the fuel fines get completely ridiculous is when JQ have a sale - I've seen fares offered for $29 whilst FF redemptions on the same flights cost 8,000 FF pts + $40 surcharges. That is just plain wrong.

 

[straitman]

And you can only get that 13th one, even with its 20% flour fine, if some of the 9 people in the queue in front of you who regularly buy the more expensive French pattisserie items decide they dont want the extra loaf on this occasion.

Ain't I glad I subscribe to frequentbaker.com.au and therefore understand these things

I do like your analogy. Well done :!:

:mrgreen:

 

[Mal]

Kudo's to Qantas .... Now about those pesky fuel fines?

 

[sefure]

I think it's a bit strange to commend a company for having a near monopoly (aided and abetted by the federal govt) and then taking agressive advantage of it.

I suppose you also praise the banks for making $4bn+ profits...

I agree, what's there to congratulate unless you're a shareholder?

 

[simongr]

Well let's compare two randomly selected airlines - say QF and AA. QF is making significant profits, reinvesting new aircraft, updating existing aircraft and enhancing he on ground experience (for top tier pax I will admit).

What is AA doing? Just returning to profit this year (remember revenue for AA is higher than QF) and is buying no new aircraft, does not have a cabin refresh program and is putting in 1999 seats in J class...

Making money is not a bad thing