Qantas forecasts stable to lower fuel costs

OREANDA-NEWS. May 14, 2015. Australian airline Qantas forecast its fuel costs for the 2015-16 fiscal year ending 30 June to be similar to the current year, which is expected to be no more than A\\$3.95bn (\\$3.13bn).

The 2014-15 fuel costs are expected to be more than 10pc lower from a record A\\$4.5bn in 2013-14. The worst-case fuel cost for 2015-16 is to be in line with 2014-15, Qantas said, although it could be as low as A\\$3.87bn next fiscal year.

Qantas forecast further fuel savings to come from the delivery of new Airbus A320s for its budget airline subsidiary Jetstar from 2016-17, with the new aircraft producing a 15pc reduction in fuel consumption.

The fall in fuel costs has helped Qantas turn more profitable after years of successive losses. Lower fuel costs helped it to a profit of A\\$206mn during July-December 2014 after it made a loss of A\\$235mn for the same period a year earlier.