Despite much scrutiny on Qantas over the past 12 months, the airline announced a record annual profit of $2.47 billion.
👉 Background: Qantas is the national airline of Australia. And of course, it owns Jetstar, its rough-and-tumble, unreliable cousin.
👉 What happened: Despite much scrutiny on Qantas over the past 12 months (here, here and here) - it seems like it's all water off a plane's wing. Qantas announced a record annual profit of $2.47 billion. As a result, they're planning to buyback $500 million worth of shares.
👉 What else: While traditionally airlines don't necessarily have very strong profit margins, Qantas is becoming quite proud of its growing profit margin.
💡Profit margins highlight how effectively a company converts its revenue into profit. And this is a key indicator of a company's financial health and its growth potential.
💡An improving profit margin shows that the company has better control over its costs, and it's able to generate more profit from its sales.
💡Qantas has not only managed to grow its overall revenue, but it has also managed to cut $1 billion in structural costs... the ultimate combo.
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