What happened to Qantas’ share price?
Qantas is trading 4.8% higher this afternoon at $2.95 per share. The stock has had an excellent run since October last year, during which its share price has more than doubled.
Why are QAN shares rising?
Today’s share price rise comes after the airline posted half yearly results that were better than expected. The company announced a return to profit with statutory profit after tax of $204 million, up from a $235 million loss a year earlier.
CEO Alan Joyce said, ‘The decisive factor in our best half-year result for four years was our complete focus on the Qantas Transformation program. It’s clear that without the impact of transformation, we would not be announcing a profit today.’
What now for Qantas Airways Ltd?
Qantas expects the benefits of its Transformation program to continue through 2015. The company didn’t provide full year profit guidance, but it is targeting $675 million of benefits from its cost-cutting program for the full year. This is up from an earlier target of $600 million.
for The Daily Reckoning Australia