SYDNEY, Oct 24 — Australian airline Qantas today announced a first quarter revenue increase of 1.8 per cent for the 2020 financial year, but warned of a profit hit from ongoing protests in Hong Kong and the US-China trade war.
A boost of 4.4 per cent in international revenue helped offset weaknesses in the domestic market, with the carrier posting a record A$4.6 billion (RM13.2 billion) in group revenue for the three months to September compared to A$4.49 billion in the same period last year.
But the carrier warned a slowdown in demand due to unrest in Hong Kong would impact first half profits.
“Protests in Hong Kong will negatively impact the group’s first half profit performance by A$25 million, with ongoing capacity reduction in place to minimise the second half impact,” the company said in a statement.
Qantas said in August that demand for Hong Kong flights had dropped by about 10 per cent due to ongoing protests.
The airline scheduled smaller aircraft on its regular flights to Hong Kong to cater for the reduced capacity.
Qantas said it expected fuel costs to increase by A$29 million for the first half, compared to the same period last year.
It also flagged US-China trade uncertainty would impact profits.
“Further deterioration in global trade conditions has impacted freight demand with an expected profit impact of A$25-30 million for the full year,” the airline said.
Qantas shares closed down 3.7 per cent at $6.28. — AFP
