Qantas posts bumper profit and seeks funds

Australia's Qantas Airways grabbed its place as one of the world's most profitable airlines today, posting a 428 million Australian…

Australia's Qantas Airways grabbed its place as one of the world's most profitable airlines today, posting a 428 million Australian dollars profit (€241.4 million) for 2001.

Australia's biggest airline also unveiled plans to raise 800 million Australian dollars to fund expansion and said a recovery from heavy domestic discounting and the September 11th attacks had continued in July.

The healthy profit, in line with market forecasts, showed Qantas has capitalised on the failure last year of its biggest rival, Ansett, sidestepping the turmoil which engulfed global aviation after September 11th.

Full-year profit rose 3 per cent on a year ago on 11 per cent revenue growth to 11.32 billion Australian dollars.

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"It was anticipated, but at the same time in today's world it's a very, very significant profit, particularly against almost 250 million [Australian dollars] in additional fuel costs," said Mr Peter Harbison, managing director of the Centre for Asia Pacific Aviation.

Shares in the airline last changed hands at 4.69 Australian dollars yesterday before a trading halt was imposed on the stock ahead of the capital raising. Trading is expected to resume on Friday.