Qantas announced full year results for financial 2018
Qantas (ASX: QAN) takes a highest flight as its underlying profit jumped to a record high of $1.6 billion for the period ending 30 June 2018. In the announcement of FY18 results, the national carrier has set aside $67 million to reward its employees and declares higher, fully franked dividends for its shareholder along with $332 million on-market buyback.
Qantas free Wi-fi and enhanced customer services has fetched statutory earnings per share of 56 cents, an increase of 21% on prior year. Group’s domestic flights Qantas and Jetstar records highest ever underlying earnings (EBIT) of $1.1 billion, up 25% on previous corresponding year.
Besides rise in fuel prices the airways reported the record operating margin of 10.5%, thus utilized to offset price hike. But an anticipation of further increase in fuel bills for FY19 seem to dash the hopes of investors despite gripping 22% return on invested capital in FY18.
The group is set to establish a second pilot academy in Australia region and it continues to extend global lounge enhancement program with the target of six additional ports to be upgraded.
The company has announced 10 cents per share ordinary franked dividend, payable on 10 October 2018 with record date of 6 September 2018. Net debt was $4.9 billion, below the lower end of the target range and capital expenditure stood at $1.97 billion in Fiscal 2018.
Airways company, Qantas forecasted net capital expenditure of $1.0 billion for FY19 while fuel cost is expected to be approximately $3.92 billion.
Despite reporting record high results for financial year 2018, Qantas stock dropped 3.125 percent to $6.510 on Thursday 23 August 2018.
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