Financial and non-financial metrics

Our key performance indicators, including financial, environmental, social and governance.

Introduction

The Qantas Group is committed to transparency on key performance indicators, including financial, environmental, social and governance metrics. A three year history of performance indicators can be found below and a five year history is accessible in excel form.  

Economic integrity

Economic integrity from FY17 to FY19
Metric Unit FY19 FY18 FY17
Underlying PBT2 $M 1,302 1,604 1,401
Statutory PBT $M 1,265 1,391 1,181
ROIC3 % 18.4 22.0 20.1
Underlying Earnings per share4 Cents per share 56 64 55
Statutory Earnings per share Cents per share 55 56 46
Net free cash flow5 $M 1,244 1,442 1,309

Customer

Customer and Brand metrics for FY17 to FY19
Metric Unit FY19 FY18 FY17
On-time performance6 % 79.2 80 81.2
Brand preference (Online research)7 % 71 N/A N/A
Brand preference (Telephone research)8 % N/A 76 74
Domestic NPS - Gap over major competitor9 Score 14.9 16 23

Safety

Safety metrics for FY17 to FY19
Metric Unit FY19 FY18 FY17
Total Recordable Injury Frequency Rate10 TRIFR 24.4 23.9 24.7
Lost Work Case Frequency Rate11 LWCFR 9.3 8.2 9.1
Duration Rate12 DR N/A 76.9 66.7
Fatalities # 0 0 0

Community

Community metrics for FY17 to FY19
Metric Unit FY19 FY18 FY17
Total supplier spend13 $M 12,571 11,006 10,089
Australian supplier spend14 $M 7,800 7,039 6,603
Aboriginal and Torres Straight Islander spend15 $M 2.2 2.4 1.6
Total community partnerships investment16 $M 3.1 4.4 3.7
Proportion of Australian and Torres Straight Islander investment17 % 35.0 17 32.6
Total Change for Good UNICEF donations18 $M 1.9 1.6 1.4
Total StarKids World Vision donations19 $M 1.0 1.1 1.7

People

People metrics for FY17 to FY19
Metric Unit FY19 FY18 FY17
Number of full time equivalent employees20 # 29,055 30,248 29,596
Percentage of employees under a collective bargaining agreement21 % 79.8 81.1 80.6
Voluntary employee turnover21 % 5.5 4.8 4.9
Percentage of women21 % 42.0 42.3 42.6
Percentage of women in senior positions21 % 35.9 35.3 35.0
Percentage of women on the Qantas Board21 % 36.4 36.4 30.0
Number of women on the Qantas Board21 # 4 4 3
Percentage of women recruited into the graduate program21 % 34.4 51.9 52.4
Number of Aboriginal and Torres Strait Island employees21 # 408 381 384

Environment

Environment metrics FY17 to FY19
Metric Unit FY19 FY18 FY17
Aviation fuel consumption22 000 L 4,888,697 4,931,466  4,873,267 
Fuel per 100 RTKs (Group Efficiency)23 L 36.2 37.1 37.6
CO2-e emissions – Total (Scope 1 & 2)24 tonnes 12,406,303 12,526,141  12,387,666 
CO2-e emissions - Scope 125, 36 tonnes 12,285,422 12,390,319  12,248,233 
CO2-e emissions - Scope 226, 36 tonnes 120,881 135,822 139,433 
CO2-e emissions – Domestic27 tonnes 4,412,114 4,451,018  4,503,746 
CO2-e emissions – International28 tonnes 7,994,189 8,075,123  7,883,921 
CO2-e per 100 RTKs (Group Efficiency)29 Kg 91.8 94.3 96.0
CO2-e emissions - Scope 330, 36 tonnes 1,212,055 N/A N/A
CO2-e emissions - Total31 tonnes 13,618,358 N/A N/A
Electricity (Australia)32 MWh 144,955 168,807  169,466 
Direct waste to landfill (Australia)33 tonnes 13,209 21,292 20,635 
Water (Australia)34, 36 000 L 800,019 895,100 902,545 
Natural gas (Australia)32 GJ 165,586 204,556  218,797 
Diesel (Australia)32 Litres 5,413,826 6,228,262  6,115,161 
Av. aircraft age - scheduled passenger fleet35 Years 11.1 10.3 9.6

Footnotes

Scope includes Qantas Airways Limited and controlled entities, including Qantas International (including Qantas Freight), Qantas Domestic, Qantas Loyalty, QantasLink, Network Aviation, Jetstar International, Jetstar Domestic and Jetstar Asia unless stated otherwise. The Consolidated Financial Statements for the year ended 30 June 2019 comprise Qantas and its controlled entities and the Qantas Group’s interest in investments accounted for under the equity method.

1 FY18 restated for changes associated with the first time adoption of AASB 15.

2 Underlying Profit Before Tax (PBT) is a non-statutory measure, and is the primary reporting measure used by the Qantas Group’s chief operating decision-making bodies, being the Chief Executive Officer (CEO), the Group Management Committee and the Board of Directors, for the purpose of assessing the performance of the Group. Underlying PBT is derived by adjusting Statutory PBT for the impacts of ineffectiveness and non-designated derivatives relating to other reporting periods and certain other items which are not included in Underlying PBT. For the reconciliation of Underlying PBT to Statutory PBT, refer to Note 1A to the Financial Statements in the Qantas Annual Report 2019.

3 Return on Invested Capital (ROIC %) is a non-statutory measure and is the financial return measure of the Group. ROIC is calculated as Return on Invested Capital EBIT (ROIC EBIT) divided by Average Invested Capital. ROIC EBIT is derived by adjusting Underlying EBIT to exclude non-cancellable aircraft operating lease rentals and include notional depreciation for these aircraft to account for them as if they were owned aircraft. Invested capital includes the net assets of the business other than cash, debt, other financial assets and liabilities, tax balances and includes the capitalised value of operating leased aircraft assets. Average invested capital is equal to the 12-month average of the monthly invested capital.

4 Underlying Earnings per share is calculated as Underlying PBT less tax expense (based on the Group’s effective tax rate) divided by the weighted average number of shares outstanding during the period.

5 Net free cash flow is calculated as operating cash flows less investing cash flows (excluding aircraft operating lease refinancing).

6 On-time performance as measured by the percentage of flights departing within 15 minutes of scheduled departure for Total Group operations including Qantas International, Qantas Domestic, QantasLink, Jetstar International and Jetstar Domestic, including Jetstar Domestic New Zealand.

7 Brand Preference (Online research) — Best Products and Services indicates percentage of customers who agree with the statement ‘Qantas is focused on providing the best products and services to its customers’. Source: Reputation Tracker, based on Australian Population. This research is conducted online and was initiated in January 2019.

8 Brand Preference (Telephone research) — Best Products and Services indicates percentage of customers who agree with the statement ‘Qantas is focused on providing the best products and services to its customers’. Source: Brand Tracking Research (House of Brand Group). This research report was previously conducted via telephone and discontinued in FY19.

9 Domestic operational NPS — Average Qantas Domestic Gap to Competitor, based on internal Qantas reporting.

10 Total Recordable Injury Frequency Rate (TRIFR): Lost time injuries per million hours worked. The total number of injuries or illnesses during work hours (1 July to 30 June) with an accepted workers’ compensation claim for Australian-based personnel, or equivalent in other jurisdictions, per million hours worked. Journey and slip port injuries are excluded from this calculation. This metric includes embedded contractors that work exclusively for the Qantas Group and perform work that is considered core business.

11 Lost Work Case Frequency Rate (LWCFR): Described as the total number of injuries or illnesses during work hours (1 July to 30 June) with an accepted workers’ compensation claim for Australian-based personnel, or equivalent in other jurisdictions, which resulted in total incapacity, per million hours worked. Total incapacity is defined as any injury or illness that results in an injured worker being unfit for work. Journey and slip port injuries are excluded from this calculation. This metric includes embedded contractors (as described above) and employees of majority-owned entities of the Qantas Group.

12 Duration rate indicates the average number of lost days per injury/illness with an accepted workers’ compensation claim for Australian-based personnel, or equivalent in other jurisdictions, resulting in partial incapacity or total incapacity. Partial incapacity means any injury/illness that resulted in an injured/ill worker being fit for work but at a reduced capacity. When considering lost time, Qantas Group injury metrics are calculated using medically certified calendar days, including partial days, for which the injured worker is unable to fulfil the duties for which they are employed (partial days are counted as one full day). Journey and slip port injuries are excluded from this calculation. This metric includes embedded contractors and employees of majority-owned entities of the Qantas Group.

13 Total supplier spend excluding payments processed through IATA clearing account and direct bank deposits for the purposes of aircraft lease payments.

14 Australian supplier spend where supplier headquarters are located in Australia.

15 Aboriginal and Torres Strait Islander supplier spend includes suppliers that are Supply Nation registered or certified as well as known Aboriginal and Torres Strait Islander suppliers. FY13/14 included one-off payments of $9m relating to carbon offsets.

16 Total Qantas community partnerships investment excludes donations facilitated through other areas of the business and voluntary logistical support provided to the Australian Government in times of crisis. The Group has transitioned from the Qantas Foundation into an internal Grant Giving program, managed by Good 2 Give. This transition has impacted the disbursement of cash from 2016/17 compared to 2015/16. Data for 2017/18 reflects the disbursement of grants donated to employees’ chosen organisations.

17 Proportion of total community investment donated to benefit Aboriginal and Torres Strait Islander communities.

18 Total UNICEF donations facilitated through Qantas’ Change for Good program.

19 Total World Vision donations facilitated through Jetstar’s StarKids program.

20 Total number of employees of majority owned entities of the Qantas Group as by employment type, full-time or part-time.

21 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership and other indicators of diversity is limited to total workforce of majority owned entities of Qantas Airways Limited broken down by gender, age group and Aboriginal and Torres Strait Islander employees as well as women in the following positions: Non-Executive Directors and Senior Management. Gender diversity indicators are consistent with diversity policy and targets, measured as at 30 June 2017. 

22 The total volume of aviation kerosene consumed by the Qantas Group’s flying businesses from 1 July to 30 June. Scope: Aviation fuel consumption includes Qantas, Jetstar, QantasLink, Network Aviation and Qantas Freight, for both domestic and international operations. Aviation fuel consumption does not include consumption by Jetstar Asia or codeshare partners.

23 Fuel per 100 revenue tonne kilometres (RTK). RTK quantifies Group fuel efficiency, described as the amount of revenue-generating payload carried, for the distance flown. Total number of tonnes of paying passenger, freight and mail carried, multiplied by the number of kilometres flown. Scope: Fuel per 100 revenue tonne kilometres (RTK) includes Qantas, Jetstar, QantasLink, Network Aviation and Qantas Freight for both domestic and international operations.

24 Total scope 1 and scope 2 greenhouse gas emissions measured in tonnes for the period 1 July to 30 June. Refer to relevant footnotes for scope 1 and scope 2.

25 Total direct greenhouse gas emissions (scope 1) measured in tonnes for the period 1 July to 30 June. Scope 1 emissions include aviation fuel and aircraft engine oil from international and domestic operations. The Qantas Group applies the National Greenhouse and Energy Reporting (Measurement) Determination factors and methodology for the calculation of CO2-e. Emissions from aviation fuel are calculated using the National Greenhouse and Energy Reporting (Measurement) Determination 2008, Method 2 – emissions of carbon dioxide from the combustion of liquid fuels. Scope: All activities under the financial control of the Qantas Group (excludes Jetstar Asia).

26 Total indirect greenhouse gas emissions (scope 2) measured in tonnes for the period 1 July to 30 June. Scope 2 emissions include indirect emissions from consumption of purchased electricity from Qantas billed facilities in Australia. The Qantas Group applies the National Greenhouse and Energy Reporting (Measurement) Determination factors for the calculation of CO2-e, except for Tri-Generation associated emissions where Qantas Group applies a facility specific emission factor. Scope: All activities under the financial control of the Qantas Group (excludes Jetstar Asia).

27 Total direct and indirect greenhouse gas emissions from Domestic operations. Domestic operations include all emissions from activities reported under the National Greenhouse and Energy Reporting (Measurement) Determination.

28 Total direct and indirect greenhouse gas emissions from International operations. International operations include all emissions from international aviation fuel consumption.

29 Greenhouse gas emissions (scope 1 & 2 only) intensity measured in kilograms of CO2-e per 100 revenue tonne kilometres (RTK) converted to CO2-e tonnes by the National Greenhouse and Energy Reporting (Measurement) Determination factors. Scope: All activities under the control of the Qantas Group.

30 Total indirect greenhouse gas emissions resulting from value chain activities (scope 3) measured in tonnes for the period 1 July to 30 June. Scope 3 emissions include indirect emissions from the extraction, production and transport of aviation and other transport fuel burned at generation, and the indirect emissions attributable to the electricity lost in delivery in the transmission and distribution network. Qantas also reports on indirect emissions sources that are considered attributable to the company’s services (passenger and freight), this includes scope 3 emissions from waste, business travel and accommodation, water use, embodied energy of aircraft, inflight magazines and on-board catering. Qantas does not report on the indirect emissions associated with the following non-attributable sources: employee commuting and client commuting. Emissions related to ground fuels and electricity consumption at international ports, as well as international scope 3 emissions (except for fuel burn, embodied energy and inbound international waste related emission sources) are outside Qantas’ operational control and excluded from this reporting. The Qantas Group offsets all employee and contractor business travel. Since our corporate travel is offset, we exclude business travel from our emissions profile to prevent double counting. The Qantas Group applies the National Carbon Offsets Standard for Product & Services as a proxy for Group emissions to determine its scope 3 emissions, using National Greenhouse Accounts (NGA) emissions factors for the calculation of CO2-e.

31 Total scope 1, scope 2 and scope 3 greenhouse gas emissions measured in tonnes for the period 1 July to 30 June. 

32 The total amount of electricity consumed as measured in megawatt hours (MWh), Natural gas measured in gigajoules (GJ) and diesel measured in litres (L) where separately billed to Qantas wholly-owned entities within Australia for the period 1 July to 30 June.

33 Total onshore waste to landfill (including quarantine waste) measured in tonnes for the period 1 July to 30 June, where waste is delivered from Qantas premises directly to a landfill site and where the Qantas Group is responsible for the waste removal and is separately billed to Qantas wholly-owned entities by a waste service provider. Scope: All activities under the financial control of the Qantas Group (excludes Jetstar Asia).

Qantas has set a 75% reduction target for total onshore waste to landfill (including quarantine waste) by 2021 against the calendar year 2018 (1 January to 31 December) baseline. Where Qantas has not been separately billed, in the case of a percentage of inflight waste associated with Jetstar flights, an estimation process has been applied based on the prorated waste generated and the number of available seat kilometres. The 2018 baseline is 22,212 tonnes36. Our performance against this baseline will be reported in 2020.

34 Total municipal water supplies measured in kilolitres (‘000 L) for the period 1 July to 30 June, separately billed to Qantas wholly-owned entities. Scope: All activities under the financial control of the Qantas Group (excludes Jetstar Asia).

35 Average fleet age — scheduled passenger fleet is calculated by determining the average age of the Group’s scheduled passenger fleet based on manufacturing dates. Scope: The scheduled passenger fleet of the Qantas Group, including both owned and leased aircraft. The Qantas Group’s scheduled passenger fleet does not include dedicated freighters and Network Aviation F100 fleet.

36 KPMG were engaged to provide Limited Assurance over Selected Sustainability Metrics (water consumption in 000 litres, scope 1, scope 2 and scope 3 emissions measured in tCO2e for the period 1 July 2018 to 30 June 2019 and onshore waste to landfill (including quarantine) measured in tonnes for the period 1 January 2018 to 31 December 2018). Read KPMG’s Limited Assurance Report (PDF).