About the Qantas Group

Qantas is the world’s second oldest airline. Founded in the Queensland outback in 1920, Qantas has grown to be Australia's largest domestic and international airline. Registered originally as Queensland and Northern Territory Aerial Services Limited (QANTAS), Qantas is widely regarded as the world's leading long distance airline and one of the strongest brands in Australia.

We have built a reputation for excellence in safety, operational reliability, engineering and maintenance, and customer service. In 2004, we launched Jetstar in Australia - a low cost carrier that has since grown to six Jetstar-branded airlines operating across Asia Pacific.

The Qantas Group's main business is the transportation of customers using two complementary airline brands - Qantas and Jetstar. Our airline brands operate regional, domestic and international services, and in the financial year ended June 2016 carried more than 51 million passengers.

The Group's broad portfolio of subsidiary businesses ranges from Qantas Freight Enterprises to Qantas Frequent Flyer and adjacent Qantas Loyalty businesses. We also operate subsidiary businesses including other airlines, and businesses in specialist markets such as Q Catering.

As at 30 June 2016, the Qantas Group employed over 30,000 people with approximately 92 per cent of them based within Australia.

For more detailed information about the Qantas Group’s history and subsidiary companies, please visit the Our Company Opens in a new window Opens in new window section of Qantas.com

The Qantas Group consists of five operating segments, which work together as an integrated portfolio:

  • Qantas Domestic is the largest carrier in the domestic Australia market with over 40 per cent share measured by capacity. Qantas Domestic is the highest margin carrier in the domestic market, with a brand, network and product offering targeted at business and premium leisure customers who value the full service experience. Along with Jetstar Domestic, the Group's dual brand strategy results in profit share significantly above market share in the attractive domestic Australia market.

  • Qantas International is the largest carrier into and out of Australia, also targeting business and premium leisure customers who value the full service experience. With significant transformation achieved to date, Qantas International is leveraging a reshaped cost base and network as well as premier airline partnerships for growth. Along with being a founding member of the oneworld alliance of airlines, cornerstone joint ventures have been formed with Emirates, American Airlines (subject to regulatory approval), and China Eastern.

  • Jetstar Group has its primary operations in Australia and New Zealand, delivering low fares and a differentiated product offering to the price-sensitive market. At the same time as Jetstar continues to expand on domestic and international routes in Australia and New Zealand, joint ventures in the fast-growing Asian markets of Singapore, Japan and Vietnam are building a pan-Asian network and brand presence.

  • Qantas Loyalty is comprised of Australia's leading consumer and SME coalition loyalty programs - Qantas Frequent Flyer and Aquire. Qantas Loyalty continues to expand and diversify its portfolio by developing new revenue streams in online retailing, prepaid cash services, data analytics, employee recognition and reward schemes, and other communities that support the core coalition loyalty programs. Qantas Loyalty provides a stable, cash positive growth vehicle for the Group's earnings profile.

  • Qantas Freight is the international and domestic air freight division of the Qantas Group, operating ten dedicated freighter aircraft as well as marketing the freight capacity of the Qantas Group including Jetstar-branded airline across Asia Pacific. This network, combined with the strength of the Emirates partnership and interline agreements, gives Qantas Freight significant network reach across the globe and in Australia.

FY16 Operating Segment EBIT

FY15 Operating Segment EBIT

FY15 Operating Segment EBIT Image

  • Qantas Domestic 34%
  • Qantas Loyaly 23%
  • Qantas International 19%
  • Jetstar group 16%
  • Qantas freight 8%

For more information about the performance of the Qantas Group’s operating segments please see the financial year 2016 results materials in the Results Centre .

Our strategy is to build the Qantas Group’s competitive advantages and create long-term shareholder value by maximising the strength of our integrated portfolio of businesses and brands.

The breadth of the Group model – with Qantas, Jetstar and Qantas Loyalty – allows us to serve the widest range of customers, gives us greater resilience to external volatility, and enables us to pursue growth opportunities in a range of markets. Our dual brand strategy in domestic Australia is designed to segment and grow the market, maximising Group outcomes.

While we continue to focus on growing earnings from our core domestic and international operations, the Group is also pursuing growth through our investments in Jetstar-branded airlines in Asia and by leveraging our deep customer insights and brand strength for disruptive growth at Qantas Loyalty.

We are focused on driving a permanent shift in our cost base and competitive position across the Group through the Qantas Transformation program, with a targeted $2.1 billion of benefits to be delivered by the end of financial year 2017.

The three-year Qantas Transformation program, launched in December 2013, accelerated our existing change agenda. Our goal was not just to navigate tough short-term conditions, but to permanently increase Qantas’ productivity and competitiveness and embed a culture of transformation across the business.

By 30 June 2016 we had unlocked $1.66 billion in cumulative benefits and reduced net debt by more than $1 billion, achieving all scheduled program targets while lifting customer satisfaction to record levels. Transformation has been the driving force behind our financial turnaround – and it’s the key to our future success and growth.

The Group’s long-term target is to deliver Return on Invested Capital (ROIC) greater than our cost of capital through the cycle. To ensure this, we target average ROIC through the cycle of greater than 10 per cent.

Safety is always our first priority

Safety is always our first priority Image

For more information on the Qantas Group strategy, please see the 2015 Investor Day presentation and video of the webcast FY15 Operating Segment EBIT Image .Opens in new window

The Qantas Group has a clear financial framework that guides our thinking on shareholder value creation, our optimal capital structure, and capital allocation.

The three pillars of the financial framework are supported by measureable targets, aligned with those of our shareholders. Our overarching objective is maintainable earnings per share growth over the cycle, to deliver total shareholder returns (TSR) in the top quartile of the ASX100 and a peer group of global listed airlines. Please see the 2016 Annual Report for further information on Qantas' TSR benchmark airline group.

By maintaining an optimal capital structure, consistent with investment grade-level leverage metrics, we seek to continually minimise Qantas’ cost of capital. Delivering ROIC above our cost of capital (WACC) will ensure we can continue to reinvest in our business for sustainable returns.

And by growing the Group’s invested capital over time, and returning surplus capital to shareholders, we will continue to create long-term value for our shareholders.

Maintaining an Optimal Capital Structure, ROIC to WACC through the Cycle and Disciplined allocation of Capital equals Maintanable EPS Growth over the cycle equals TSR in the top Quartile

Maintaining an Optimal Capital Structure, ROIC to WACC through the Cycle and Disciplined allocation of Capital equals Maintanable EPS Growth over the cycle equals TSR in the top Quartile