Qantas reaps benefits from high-valued Aussie dollar, for now
Qantas Airways Ltd believes that the current solid standing of the Australian dollar would result to better profits for the airline but it admitted that the tourism industry would eventually feel the crunch of the surging currency.
The Aussie dollar's strong performance so far has encouraged an upsurge in outbound passengers, according to Qantas chief executive Alan Joyce, who added that the presently high valued currency attracts more overseas travel for many Australians.
Yet the downside is the plunging numbers of inbound passengers, which Qantas said would eventually point to negative revenue.
Still for now, the national carrier is reaping the benefits of the soaring Aussie dollar as Mr Joyce cited that "it's net positive for Qantas because we buy $3 billion worth of fuel in US dollars, and in Australian dollars that's cheaper."
Mr Joyce told reporters on Wednesday that Qantas is now enjoying a big cost benefit due to the robust performance that the local currency has so far shown, which he said far outstripped the negative revenues caused by the weak influx of passenger traffic.
However, Qantas said that while the carrier's short term profitability saw marked improvements on the back of a stronger Australian currency, the longer term outlook of a high-valued dollar would be beneficial for the market.
Mr Joyce said that maybe in the short term, Qantas' profits have spiked "but in the longer term I don't believe it's good for the tourism industry because I think it weakens the tourism industry," which he added would eventually hurt the market.
Qantas is looking forward for the onset of a more balance market dynamics, including that of the Australian dollar standing, as the company stressed that a skyrocketing value for the currency should be a cause for worries and would discourage the entry of more tourists into the country.