QANCD Qantas Airways Ltd

   By Mike Cherney 
 

SYDNEY--Australian flagship airline Qantas Airways Ltd. (QAN.AU) said it expects a record underlying pre-tax profit after posting strong revenue growth in the third quarter, and that it ordered six more Dreamliners from Boeing Co.

The airline known for its iconic flying kangaroo logo said that it expected underlying pre-tax profit to be between 1.55 billion and 1.6 billion Australian dollars (US$1.16 billion to US$1.2 billion). In the fiscal third quarter, which ran to the end of March, Qantas said group revenue rose 7.5% to A$4.25 billion.

Qantas said the six new Dreamliners ordered for its international fleet would allow it to retire its six remaining Boeing 747s by the end of 2020. The new Dreamliners will begin arriving in the first half of fiscal year 2020 and will bring the Qantas-brand international Dreamliner fleet to 14. The airline announced the retirement of its five oldest 747s, from a fleet of 11, when it ordered its first eight Dreamliners in 2015.

Qantas Chief Executive Alan Joyce said the Dreamliners are more efficient than the old 747s and that the planes will "open up new network options."

Qantas in March began nonstop service between Perth and London, and switched its hub from Dubai to Singapore for its second London service. It also recently renewed a partnership with Emirates.

Qantas embarked on an aggressive cost-cutting program in recent years after a costly price war with main domestic rival Virgin Australia Holdings Ltd. ate into profits.

Mr. Joyce said the company would post strong full-year results even though the airline's fuel bill is expected to increase by A$200 million in the fiscal year.

-Write to Mike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

May 01, 2018 19:32 ET (23:32 GMT)

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