Qantas has filed a financial update to the ASX with includes an estimated $500-550 million group underlying profit before tax in the year to June 30.

It has also announced a $95 million benefit from a settlement of its claims against engine maker Rolls-Royce arising from the catastrophic engine failure that crippled the airline’s first Airbus A380 near Singapore on November 4 last year.

The sting in the new guidance is that Qantas international is estimated to lose $200 million in the full financial year, and as the airline emphasises in its statement, on an investment of $5 billion.

This issue with Qantas international is expected to be linked to a fresh attack on Qantas pilots and engineers in a speech and Q and A session that Qantas group CEO Alan Joyce will make to the National Press Club in Canberra shortly.

The statement doesn’t break out the domestic Qantas performance, nor the estimated contributions of Jetstar and the frequent flyer loyalty program.

While Qantas has increased its guidance on the impact of natural disasters on its full year results to $206 million, it puts the estimated cost of the volcanic ash episodes to June 20 at only $21 million.

This is what Joyce says in relation to international Qantas operations in the ASX statement.


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Peter Fray
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