Qantas published its annual results for the year ended 30 June 2013 last week. The airline posted a modest net profit of AUD$6 million after tax, which was a significant improvement over last year’s loss of AUD$206 million. This was primarily due a reduction in losses at Qantas’ International division, which prompted a significant reduction in capacity to Europe and the jettisoning of Qantas’ partnership with BA in favour of Emirates, by almost half to AUD$246 million.
Whilst the partnership between Emirates and Qantas is still very much in its infancy, it is curious that Qantas seems to have declined to give any clear revenue guidance on the partnership. In its results it gave only vague operational measures such as “2 times increase in codeshare bookings on EK network” and “3 times increase in EK bookings on Qantas Domestic network” compared to the partnership with British Airways and others. It is hard to draw any conclusions from such claims without seeing the detail behind the headlines.
Meanwhile, British Airways has remained upbeat on the performance of its last remaining Australian route, London-Singapore-Sydney.
