Qantas’ biggest

Press, 28 July 1987, Page 27

Qantas’ biggest

By

MARY-ELLEN BARKER

NZPA-AAP Sydney

Qantas has announced its biggest profit in the company’s 67-year history.

Chairman, Jim Leslie, said unaudited operating profit after tax and extraordinaries for the Gov-ernment-owned airline rose to sAust63.4 million for the year ended March 31, a huge jump from the S3.BM earned in 1985/86. He said the improved result in a competitive market was due to the newly introduced fleet of extended range Boeing 767 aircraft, a jump in the number of tourists to Australia, the drop in value of the Australian dollar and a lower fuel price. The previous year’s result had been hurt by the high cost of the new fleet of planes, but the latest figures showed Qantas was now coming out of a big trough. Qantas’ total assets are $2 billion. Liabilities, including long-term loans, is $1.5 billion.

But Mr Leslie said that although the company is profitable and he was confident its performance could be repeated, Qantas will need a capital injection of S3OOM to S4OOM within the next five years. He said Qantas expected a 7.5 per cent growth each year in passenger numbers, and expected to need an extra two planes a year.

Since the Commonwealth acquired all Qantas’ shares for $455,000 in 1947, it has earned total profits of $352.7M. Most of that — 77 per cent, or $273.3M — has come in the past four years as Qantas broke out of the red. Mr Leslie said the recommended dividend this year is $20.2M, up from last year’s $14.9M. Foreign earnings of $1.5 billion were up 30 per cent, making Qantas one of Australia’s top export earners.

Operating profit before tax and extraordinaries rose to $103.6M from $44.4M.