The result was also dragged down by the Qantas international operation, which saw a loss of A$450 million before interest and tax (EBIT). In contrast, the other units were profitable. The Qantas mainline operation as a whole reported an EBIT loss of A$21 million, while Jetstar had an EBIT profit of A$203 million.

The international turnaround plan is expected to spur improvement in this segment in the current fiscal year. Joyce says the major restructuring has already been completed, and the international operation is now at an “inflection point.”

Group capacity is forecast to increase 3-4% in the current fiscal year, with domestic capacity growing 9-11%. Evans admits the domestic increase could lead to pressure on yields, which the carrier is already seeing. Domestic competitors have also been adding capacity, and Qantas believes it needs to maintain a 65% domestic market share to maximize its profit in this segment.