Qantas: The High Flyer of the Airline Industry?

On 19 August 2004, Qantas announced record net profits of $648.4 million for the year ended 30 June, an increase of 89 per cent over 2003, despite a decline of 0.2 per cent in consolidated revenues to $11.4 billion. Commenting on the results, the CEO of Qantas, Geoff Dixon, said the record full-year result, achieved in difficult conditions, was a tribute to Qantas staff and management: 'the group responded extremely well to the myriad challenges it has faced over the past 12 months.' Qantas' record profit for 2003-04 were in sharp contrast with the financial performance of most airlines worldwide. After losses in 2001 and 2002, airline finances were dealt further blows in 2003 by the Iraq war, and the severe acute respiratory syndrome (SARS) epidemic, particularly in the Asia-Pacific region. Estimates of consolidated losses in 2003 for the industry ranged between US$5.5 billion (Air Transport World) and US$6.5 billion (International Civil Aviation Organization).