It’s tough to overstate the tide of troubles that faced Alan Joyce, the chief executive officer of Qantas Airways, just two years ago.
Losses had ballooned amid a capacity war with Virgin Australia Holdings and its foreign backers. Australia’s government wouldn’t guarantee Qantas’s debt, which was junk-rated at the time. The airline’s share price wallowed near an all-time low and thousands signed a public petition for Joyce to be sacked.
Now he’s pulling off one of the fastest turnarounds in Australian corporate history. Qantas stock has almost quadrupled and the airline is set for a record profit this year. Next week, Joyce may announce another cash return to shareholders, cementing his transition from embattled CEO to investor darling.
“It is a remarkable result,” said Neil Hansford, chairman of Strategic Aviation Solutions, a consultancy firm based in Nelson Bay, north of Sydney, that specialises in business turnarounds. “Joyce was the punch bag for the media. Now that the airline has turned, he deserves the credit.”
Underlying pretax profit will jump to A$908.7 million ($905 million) for the six months to Dec 31 from A$367 million a year earlier, according to the average of three analyst estimates compiled by Bloomberg. Qantas said Dec. 15 it expected pretax earnings of A$875 million to A$925 million, as Joyce’s turnaround program, rising sales and lower fuel prices take effect. The company reports on Feb 23.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
Losses had ballooned amid a capacity war with Virgin Australia Holdings and its foreign backers. Australia’s government wouldn’t guarantee Qantas’s debt, which was junk-rated at the time. The airline’s share price wallowed near an all-time low and thousands signed a public petition for Joyce to be sacked.
Now he’s pulling off one of the fastest turnarounds in Australian corporate history. Qantas stock has almost quadrupled and the airline is set for a record profit this year. Next week, Joyce may announce another cash return to shareholders, cementing his transition from embattled CEO to investor darling.
“It is a remarkable result,” said Neil Hansford, chairman of Strategic Aviation Solutions, a consultancy firm based in Nelson Bay, north of Sydney, that specialises in business turnarounds. “Joyce was the punch bag for the media. Now that the airline has turned, he deserves the credit.”
Underlying pretax profit will jump to A$908.7 million ($905 million) for the six months to Dec 31 from A$367 million a year earlier, according to the average of three analyst estimates compiled by Bloomberg. Qantas said Dec. 15 it expected pretax earnings of A$875 million to A$925 million, as Joyce’s turnaround program, rising sales and lower fuel prices take effect. The company reports on Feb 23.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
0 comments:
Post a Comment