Qantas Group expects better FY2020 outlook, forecasts decline in competitor capacity

    Qantas Group announced (22-Aug-2019) the group plans to focus on matching capacity with demand, together with growing revenue to recover higher fuel costs for its FY2020 outlook. Key details include:

    • Total fuel bill is expected to increase AUD3.95 billion (USD2.67 billion) and is fully hedged;
    • Group capacity is expected to increase 1% by 1H2020, with Group domestic capacity predicted to be flat or slightly down. Group international capacity s expected to increase by 1.5%, while competitor capacity is expected to decline 1% in 1H2020;
    • Inflation impact on Group expenditure, including wage growth, is expected to be AUD250 million (USD169.5 million)
    • Transformation benefits are expected to be AUD400 million (USD271.2 million);
    • Gross capital expenditure is expected to be AUD2 billion (USD1.35 billion) for FY2020;
    • Net underlying depreciation and amortisation is expected to be AUD130 million (USD88.2 million) higher than FY2019.