Qantas expects strong bookings to help recover higher fuel bill for FY2019

    Qantas Group reported (23-Aug-2018) the following outlook for FY2019:

    • General outlook: Strength of forward bookings and continued focus on transformation “provides confidence” that Qantas Group will substantially recover expected higher fuel costs in FY2019. This is supported by capacity discipline and “fundamental strengths of our dual brand strategy in the domestic market”, combined with its margin advantage and fleet investment in the international market;
    • Operating expectations:
      • Total fuel bill: Around AUD3920 million (USD2869.9 million), +21.4% year-on-year;
      • Inflation impact on group expenditure (including wage growth) of around AUD250 million (USD183.0 million);
      • Transformation benefits: Around AUD400 million (USD292.6 million);
      • Net capital expenditure: AUD1 billion (USD732.1 million);
      • Total group capacity: Flat to 1% growth in H1FY2019, with Qantas Group International up 1% and Qantas Group Domestic capacity flat;
      • Net depreciation and non-cancellable aircraft operating leases expected to be around AUD155 million (USD113.4 million) higher year-on-year. [more – original PR]