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On Monday, Qantas Airways Ltd stated that they are expecting to report their best first-half result since the year 2010 as lower oil prices cut fuel costs and a A$2 billion cost-cutting program shows results. These positive outcomes send the company’s shares to a three-and-a-half year high.
The shares of the company, which is also known by its code name Flying Kangaroo, went up by a total of 16 percent as it further stated that they are expecting further gains coming from its lower fuel prices and turnaround strategy in the second half of 2014.
According to Qantas, its prime first-half profit would lie between A$300 million and A$350 million. This first-half profit estimate implies a faster-than-expected recovery from the A$2.8 billion net loss of last year.
Alan Joyce, who is the Chief Executive of Qantas Airways Ltd, told the reporters that their company’s strategy is definitely working. The company also sees all of its operating segments, which include troubled international division, as something that would be profitable.
The company has struggled for the past couple of years due to a strong Australian dollar, high fuel costs, domestic price war with Virgin Australia Holdings, its rival, and increasing international competition.