KEY POINTS:
Qantas workers will be given A$2000 ($2445) in cash and shares after the company posted a 44 per cent rise in full-year profit.
Qantas chairman Leigh Clifford said the hard work and commitment of employees contributed to the airline's result.
It would give A$1000 worth of shares and
a cash bonus of A$1000 to all eligible staff. Most of the airline's 37,000 workers around the world will get the bonus.
Net profit rose to a record A$969 million as Australia's biggest airline flew more passengers. The previous year's revised profit was A$672.6 million. Sales gained 7.5 per cent to A$16.19 billion.
Like other airlines worldwide, Qantas hit tough times in the second half of the year, as soaring oil prices and softer demand for travel in some key markets took their toll. But it said it was better placed than almost any other airline to meet the challenges facing the industry.
Qantas' jet-fuel expenses rose 8 per cent in the year, as hedging helped the carrier withstand a 46 per cent jump in prices that triggered losses at rivals Cathay Pacific Airways and Virgin Blue Holdings.
The crude oil price has fallen 20 per cent since peaking near A$150 a barrel in mid-July, but it has not muted the cries of the airline industry.
This week Virgin Blue reported a 55 per cent fall in 2008 profit on high fuel prices, cut its dividend and painted a gloomy outlook, sending its shares tumbling.
"This is a tough industry and this is by any stretch of the imagination a pretty good result," said Qantas chief executive Geoff Dixon. "Very few countries in the world have what Australia has at the moment, which is effectively viable airlines across the board, including obviously Virgin."
Qantas shares rose 8c to A$3.48 on the ASX yesterday. The stock has fallen 36 per cent so far this year.
Passenger revenue rose to A$12.7 billion from A$11.9 billion in the full year, the airline said. Freight revenue rose to A$947.3 million from A$902.5 million.
Qantas paid A$3.6 billion for fuel in the fiscal year, compared with A$3.34 billion a year ago.
The carrier yesterday forecast an A$1.6 billion increase in fuel for this year but said it had hedged 81 per cent of its crude-oil exposure at a worst-case all-in cost of A$118 per barrel. Crude currently fetches around A$116 a barrel.
"If you had to own an airline stock, it'd be the one to own," said Tom Elliott, managing director of hedge fund MM&E Capita. "Qantas hedges its fuel. That's paid off big time."
To offset higher fuel expenses the carrier has increased international and domestic fares for tickets issued in Australia.
The airline said it had also cut capacity and handed some services to Jetstar, its discount unit.
"Assuming no further deterioration in economic conditions, Qantas expects its 2008/09 profit before tax to be broadly in line with analyst consensus forecasts," Qantas said.
Analysts are expecting a pre-tax profit of A$743 million in the year ahead, about half the A$1.4 billion reported for 2007/08.
The airline has 66.4 per cent of Australia's domestic air-travel market, where it competes with Virgin Blue. Qantas declared a final payment of A17c a share for a full-year payout of A35c, up from A30c. Staff reporter, agencies
Flying Kangaroo
* Passenger revenue: A$12.7b (up 6.7%).
* Freight revenue: A$947.3m (up 5%).
* Net profit: A$969m (up 44%).
