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SYDNEY - Takeover target Qantas Airways increased its annual profit forecast after posting a 2 per cent rise in first-half net earnings as cost cuts and strong demand partly offset higher fuel prices.
The airline, which is being courted by a consortium led by Macquarie Bank and Texas Pacific Group, also declared a special dividend as it seeks to win shareholder support for the US$8.7 billion ($12.7 billion) bid.
Qantas said net profit for the six months ended December 31 was A$358.7 million ($407.3 million) from A$352.8 million a year earlier.
Analysts had estimated an average of A$338 million within a range of A$222 million to A$422 million.
The Australian airline expected annual pre-tax profit to rise 30 to 40 per cent, up from December's forecast of a 25 to 30 per cent rise over last year.
"We believe that the full-year result will be around 30 to 40 per cent higher than last year's result subject to fuel costs not increasing significantly, demand continuing to grow and cost reductions not achieved in the first half being realised in the second half."
Shareholders have until March 9 to vote for the offer from Airline Partners Australia. The consortium this week asked the Foreign Investment Review Board to review the takeover.
Qantas chairwoman Margaret Jackson said the offer was "the best opportunity for shareholders to realise significant value for their investment in Qantas".
- REUTERS
