SYDNEY, Feb 21 (Reuters) - Australia's flagship carrier
Qantas Airways Ltd said it has received compensation
from Boeing Co for delays in deliveries of the grounded
787 Dreamliner jet, as it reported a 10.4 percent increase in
first-half profit.
Qantas said on Thursday the result included A$125 million
($128.6 million) of compensation income from Boeing because of
delays by the U.S. planemaker in delivering the Dreamliner.
"The comprehensive settlement, negotiated by Qantas
management, recognises the opportunity-cost to our business
incurred by the delay in delivery of the B787," Qantas chief
executive Alan Joyce said in a statement.
Qantas has firm orders for 14 Boeing 787-8 Dreamliner
aircraft earmarked for its budget arm Jetstar and has options to
order 50 of the new generation aircraft. First delivery is
expected later this year.
Underlying profit before tax for the six months to December
was A$223 million, compared with A$202 million a year ago.
That was in line with the carrier's guidance of A$180
million to A$230 million and slightly above analysts' average
forecast of around A$216 million.
Qantas said the operating environment remained challenging
and did not provide profit guidance.
The Australian carrier, battered in recent years by more
nimble competitors, is banking on its ambitious plans to tap the
lucrative Asian market to reverse record losses and a slumping
share price.
Qantas has also embarked on a broad cost-cutting regime,
axing loss-making routes, slashing staff numbers, consolidating
maintenance facilities and canceling plane orders.
Qantas shares closed on Tuesday at $1.615, up from a low of
A$0.96 last June. The stock has risen about 8 percent so far
this year, compared with a 10 percent rise in the overall
market.