Qantas Freight, the cargo division of Australian flag carrier Qantas, reported freight revenue up 2.1% to US$891 million in its fiscal year ended 30 June 2014. The revenue increase was largely due to “the acquisition and consolidation of Australian air Express,” and that gain was offset by “lower Qantas Freight capacity as a result of Qantas International network reductions.”
However, despite the slight increase in revenue, earnings (EBIT) in the Qantas Freight segment fell 33.3% to US$22 million. On the bright side, almost all of the earnings decline came in the first half of the fiscal year, while “the full run-rate benefits from the integration of Australian air Express began to be received in the second half.”
While Qantas Freight’s earnings declined, they were at least still positive – one of the few bright spots for parent Qantas, which reported a full-year net loss of US$2.65 billion.
Qantas Freight operates nine freighters of its own, including one 767-300F, four 737-300Fs, and four BAe 146QTs, and ACMI-leases two 747-400Fs from Atlas Air Worldwide Holdings.