Qantas posted a record full-year underlying profit of $1.53 billion, a 57% improvement, completing one of Australia’s biggest corporate turnarounds.
Just two years ago, the national airline reported a $2.8 billion loss.
On Wednesday, Qantas returned to paying dividends for the first time since 2009, declaring a fully franked final dividend of $0.07 a share, totaling $134 million, and an on-market share buyback of up to $366 million.
"Qantas is stronger than ever, but we're also determined to keep changing and adapting so that we can succeed no matter what environment we're in," CEO Alan Joyce says.
"This is the best result in the 95-year history of Qantas — and the best result in Australian aviation history, full stop."
Qantas shares were up 4.5% to $3.55 in early trade.
Statutory profit was up 84% to $1.03 billion on a 2.4% rise in revenue to $16.2 billion.
And earnings per share almost doubled to $0.49 from $0.24.
Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty all reported record results.
The big improvers were Jetstar, with a 97% rise in EBIT (earnings before interest and taxes) to $452 million, and Qantas International, with a 92% improvement to $512 million. Qantas Domestic was up 20% to $578 million.
The staff will benefit. About 25,000 employees are eligible for a one-off $3,000 record result bonus if they were included in the airline's 18-month pay freeze.
Qantas is benefiting from an ongoing transformation program that aims to strip out $2 billion in costs, lower fuel prices, and end its a domestic seat-price war with Virgin Australia.
"Our transformation program is paying dividends for our shareholders, our customers, and our employees," Joyce says.
"Our people can be incredibly proud of what they've achieved. It's thanks to their skill and commitment that we're announcing a record profit today.
"This was a true team performance, which shows that our strategy is the right one for the tough markets we're operating in and the long-term opportunities we see ahead of us."
The 2016 results in detail:
Joyce says Qantas expects to continue its strong financial performance in the first half of the 2017 financial year.
"We are focused on preserving high operating margins through the delivery of the Qantas transformation program, careful capacity management, and the benefit of low fuel prices locked in through our hedging," he says.
Qantas is planning for capacity growth of 2% to 3% in the first half of the 2017 financial year 2017. Earlier this year it started cutting capacity because of negative sentiment caused by the federal election.
Full-year benefits from cost cutting and fuel efficiency are expected to be $450 million.
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