Aust Airlines record; cautious on future

Press, 2 September 1986, Page 29

Aust Airlines record; cautious on future

NZPA-AAP Melbourne Australian Airlines has announced a record net profit of sAust37.B million for 1985-86, but said profits cb.uld fall this year when the airline introduced new aircraft. The chairman, Mr Neil Smith, said the result was a 26 per cent increase over the previous year’s profit of almost $3O million and reflected improved revenue from all sectors and strict cost control. He said he was confident for the year ahead, but profits could fall because of initial costs associated with the introduc-

tion of new 8737-300 S.

“Replacement of older equipment such as DC9s with more efficient aircraft is sound business practice and the benefits will show up fairly quickly after the early high interest and depreciation costs are met,” he said. The Federal Transport Minister, Mr Peter Morris, described the result as “outstanding” and said the Government’s aviation, policy had placed Australian on a sound commercial footing, which allowed it to operate more effectively.

Mr Smith said the airline’s numbers passed five

million for the first time in many years, but fell just short of the record level of almost 5.1 million.

Passenger kilometres travelled were a record 4900 million.

The latest profit was achieved with only one increase in air fares of 4.9 per cent — well below inflation, he said.

The airline has recovered from a loss of $10.90 million in 1982-83 to $3.90 million and $29.96 million profits in 1983-84 and. 1984- It operated the 1985- year as TAA, but on August 4 the name was changed to Australian Airlines.