Qantas Freight reported underlying earnings before interest and tax (EBIT) of $38 million for the six months ended 31 December 2015, compared with $54 million in the first half of last year.
The Australian carrier said that the global cargo market remained challenging, with lower domestic demand and in key international markets contributing to a 5% fall in revenue.
Qantas Freight would focus on increasing efficiency improving customer service, and maximising new markets opened up by Qantas International’s expansion, it said.
Cargo’s weak performance contrasted with a record first-half performance for the Qantas group as a whole. Underlying profit before tax was $921 million and statutory profit before tax was $983 million. It helped Qantas to a best-ever calendar-year performance in 2015.
Chief executive Alan Joyce said the result reflected “a stronger, leaner, more agile Qantas.”
