Qantas Airways Limited

The flying kangaroo announced a half-year net profit of $352m, more than doubling the $153m reported last year. An interim dividend of eight cents fully-franked (ex-date 5 Mar) was declared, matching last year's dividend. Management claimed the company will face trouble if war breaks out in Iraq. And the company announced a plan to cut costs which includes savings on staff costs. We wonder if the fear is genuine or just a strategy to keep the unions at bay? Either way, for the reasons we've harped on about so often in the past, we dislike the airline industry. And we're not likely to change our opinion now. Those that have held Qantas for this long can continue to HOLD. Otherwise subscribers should STEER CLEAR.