Qantas
(ASX:QAN) has provided an update on its September quarter FY2018 results, with total group revenue up 5.1 per cent to $4.19 billion for both domestic and international markets compared to the prior corresponding period.
The airline is expecting underlying profit before tax in the range of $900-$950 million in its first six months of FY2018.
Unit revenue increased 3.1 per cent this quarter, with Qantas and Jetstar domestic revenue growing 8 per cent, with domestic demand improving due to stable conditions in the resources market.
International business on the other hand eased slightly, with unit revenue increasing marginally at 0.2 per cent in the face of a 3 per cent increase in competitor capacity.
Fuel costs and international capacity growth is expected to toughen conditions in the second half of the financial year, but is expected to increase by around 5 per cent in the first half of FY2018.
Shares in Qantas
(ASX:QAN) are trading 5.87 per cent lower to $6.03.
