Investor Presentaiton
QANTAS INTERNATIONAL
International operating environment
Impacted by GFC fallout and high AUD, now benefiting from Transformation
14
1.3
1.2
•
2005-2008: Strong Australian economic
growth and lower AUD
Strong demand growth
High yields masking underlying cost
problem
Continued growth of hub carriers in Asia,
Middle East
1.1
Delays in A380 constrain capacity growth
for Qantas and competitors
•
1
2009-2014: GFC fallout, rising fuel prices and
surging AUD
GFC triggers negative demand, yield collapse
in core international markets
Strong AUD, Australian economy strength
leads to influx of competitor capacity
•
FY15: Transformation-led recovery
Accelerated Transformation
Transformation to address cost issues begins
•
Cooling resources sector results in AUD
back to long-run average
Competitor yields, already impacted by
over-capacity, decline further with AUD
Market capacity growth reduces from 9%²
in FY14 to 1% in FY15²
•
Brent oil peaks at US$125/bbl
AUD Brent oil at 5-year low
0.9
AUD/USD
0.8
0.7
0.6
Competitor Capacity CAGR: +1%¹
Competitor Capacity CAGR: +7%¹
Competitor Capacity: ~+1%²
0.5
1. Based on number of seats. Source: BITRE January 2005 to December 2014. 2.BITRE(excl Qantas Group) vs FY13. 2. Based on BITRE & OAG published schedules as at April 2015 (excluding Qantas Group).
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