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Qantas quells takeover talk with increase in profits

Qantas quells takeover talk with increase in profits

Australian airline Qantas Airways has seen annual profits double as it seeks to dispel takeover rumours.

The flag-carrier reported a net profit of A$250 million for the year ended June 30th, up from A$112m a year earlier.

The positive results come despite rising fuel prices, a series of natural disasters in key market and strikes.

Chief executive Alan Joyce said the results were achieved despite these challenges.

“This result reflects the strength of the Qantas Group’s portfolio and is our best performance since the global financial crisis,” he said.

“We achieved the result while overcoming significant external and operational factors, including a series of natural disasters, a 28 per cent increase in average fuel prices and an underperforming international business.

Qantas recently outlined a major overhaul of its operations – including the launch of two new airlines – in an attempt to boost profitability.

As many as 1,000 jobs will go as part of the proposals, with engineers subsequently outlining plans to take industrial action.

In 2010 strong domestic demand offset a drop in international business.

Qantas described the global business environment as “challenging and extremely volatile” as its international business reported a full-year loss of A$200 million.

In the Australian market Qantas said: “We strengthened our business travel credentials with new aircraft and new airport infrastructure, while the acquisition of the Western Australia-based charter airline Network Aviation increased our presence in regional Australia.”