Qantas has a good day. Record profit, Renovated lounge & Refreshed cabins

After no media releases for a couple of weeks, Qantas has released 3 on the same day. Nothing like a flood of good news on the day you announce second highest profit ever.

Profit

• 2nd highest in Qantas history at $1,401 million before tax (down 8.6% on last year)
• 20.1% return on invested capital
• Bonus for non-executive staff of $55 million
• 7¢ per share dividend plus a buyback of up to $373 million

Obviously, Qantas is putting the best spin on this result by using ‘underlying profit’. If you look at their net profit, it’s a reduction from last year of over 17%.

Lounge renovation – Melbourne . . . and boy, do those lounges need it!

• Begins November 2017 – will take 12 months
• Staged so lounge is still accessible
• Same size but more capacity – Business up by 40% to 250 people; Club up 10% to 530 people
• Joint reception but separate entries (as opposed to entering Business through the Club lounge)

Upgrade to A380 Cabins

• Upper deck – 30 Economy seats to go, extra six Business and 25 Premium Economy plus some space efficiency
• Replace Skybeds with Business Suites – every seat with direct aisle access
• New Premium Economy in 2-3-2 configuration – claiming 10% increased width – will debut on Dreamliner in 2018
• Reconfigure front of upper deck to provide more lounge space (hope that doesn’t mean a decrease in the bathroom size!)
• No new First Class seats – just a refurb and larger, higher resolution screen
• New seat cushions in Economy and ‘improved’ entertainment

You have to wait until the second quarter of 2019 for this project to start – but all 12 aircraft will be upgraded by end of 2020 –  don’t hold your breath.

We’re seeing increased demand for Premium Economy and Business Class on the long haul routes that the A380 operates, including from people using their Qantas points to upgrade. When more travellers experience these new seats, we expect that demand will keep rising.

says Alan Joyce

The release also promises:

• Memory foam mattress and pillow menu in first class (but I love the sheep skin!)
• Next generation wifi when it becomes available
• More A380’s on Asian routes, while 787 does the run to London

New Cabin in Summary

• 14 first – remains on lower deck
• 70 business (+6)
• 60 Premium (+25)
• 341 Economy (-30) – no intimate Economy section at the back of the upper deck

They have a fact sheet for you to download.