Qantas beats rivals to report £91m profits

Australian flag-carrier Qantas today emerged as one of the few airlines to remain profitable through the recession.

It made profits of A$181 million (£91 million) in the year to June — though the final six months saw losses of A$107 million.

Despite an 87% fall in full-year profits, and scrapping its final dividend, chief executive Alan Joyce remained upbeat:

"There has never been a more volatile and challenging time for the world's aviation industry," he said.

"When most airlines are reporting losses, the Qantas Group is reporting a profit for the full-year.

"Through unprecedented and significant shifts in operation conditions and demand, we have remained financially strong."

Joyce pointed to the diversity of Qantas operations, with its low-cost airline Jetstar boosting capacity as holiday trade remained more robust than the business market.

The airline industry as a whole is forecast to lose £5.5 million this year, with BA making record losses of £100 million in the three months to June. Rivals Air France-KLM and Lufthansa also made huge losses, but low-cost Ryanair and easyJet stayed profitable.