AUSTRALIA's Qantas Freight second half pre-tax profit fell US$3 million to $38 million year on year from earnings of $38 million the previous year.
  "Qantas Freight has been affected by high fuel costs and weaker demand across the cargo sector, resulting in loads declining. However, a good performance in the domestic express freight market and increased contract revenue helped minimise the overall drop in earnings," said CEO Alan Joyce.
  This decrease extended to Qantas' passenger sector, as well. Overall, the carrier reported an underlying profit before tax of $202 million in the second half of 2011, a $215 million year on year loss.
  This number reflects the $194 million financial impact of strikes that grounded flights in late October and the 26 per cent year-on-year increase in fuel costs, said Qantas.
  But the October 31 union settlement helped re-ignite business, said Mr Joyce. "While the impact of the dispute was severe, our portfolio of businesses once again demonstrated its resilience in difficult conditions. Improvements in operating cash flow, revenue, yield and unit costs, and record results for Jetstar and Qantas Frequent Flyer, helped offset the financial effect on the group."
  Qantas is also in the midst of reducing expenses by deferring Boeing 787-800 deliveries and reducing domestic flight capacity.

(source:shipping online)