August 26, 2016
The Jetstar Group reports record underlying EBIT of $452 million for 2016
Qantas Group’s low-fares airline, the Jetstar Group, recently reported record underlying EBIT of $452 million, up 97 per cent for fiscal year 2016.
Operating margin for the Jetstar Group in financial year 2016 was up 5.8 points to 12.4 per cent, helped by a 3 per cent reduction in unit costs (excluding fuel).
After completing the renewal of Jetstar’s long-haul fleet with Boeing 787-8 Dreamliners, investment is focused on continuing to improve the airline’s customer experience and online sales channels.
The Jetstar airlines in Asia delivered an $85 million improvement on last year.
This improved performance included a first full-year profit for Jetstar Japan, which recently announced plans to grow from 20 to 28 aircraft over the next three years, building on its success since launch in 2012 and supporting ongoing domestic and international growth.
The result saw a strong contribution from across the Jetstar Group’s domestic and international businesses, with highlights including:
· Jetstar Domestic result up 62 per cent to $242 million, leveraging brand and network advantage
· Strong Jetstar International profit with B787-8 efficiencies and growth in core Asia-Pacific markets
· Operating margin improvement, up 5.8 pts to 12.4 per cent
· Controllable unit cost reduction of three per cent
· Successful launch of New Zealand regional operations
A stand out of the Jetstar Group result was the performance of Jetstar Airlines across Asia, which delivered an $85 million improvement in profitability compared to 2014/15.
Jetstar Asia in Singapore had a strong result with the launch of four new destinations (including charters into China) and total unit cost reduction, notwithstanding a challenging competitive market.
Jetstar’s focus on driving customer advocacy and ancillary revenue growth continued with investment in innovative service training and digital sales. A re-design of jetstar.com, including data-driven ancillary product offering, has enhanced the customer experience.
About The Jetstar Group
Jetstar’s mission is to offer low fares to enable more people to fly to more places, more often. Since we launched in Australia in 2004, we’ve carried more than 200 million passengers.
We have one of the Asia Pacific’s largest low fares networks by revenue. Jetstar-branded carriers operate more than 4,000 flights a week to more than 75 destinations.
The group consists of:
Jetstar Airways in Australia and New Zealand, wholly owned by the Qantas Group.
Jetstar Asia, based in Singapore and managed by Newstar Holdings, majority-owned by Singapore company Westbrook Investments (51 per cent), with the Qantas Group holding the remaining 49 per cent.
Jetstar Pacific Airlines, based in Vietnam and majority-owned by Vietnam Airlines with the Qantas Group holding 30 per cent.
Jetstar Japan, a partnership between the Qantas Group, Japan Airlines, Mitsubishi Corporation and Century Tokyo Leasing Corporation.
Media contact:
Ms Cynthia Yen-Sullivan, Jetstar Asia, +65-6318 0862,
James Best, Aziam Burson-Marsteller 02-252-9871