Qantas to provide a nice profit

Qantas has advised that it is on track to deliver a higher net profit in
2006-07.

Australia's national carrier is benefiting from a large fall in the crude
oil price, which has cut its fuel bill. Contrary to this though the
airline's restructuring costs are likely to rise due to plans to outsource
IT systems maintenance activities to two companies in India.
This will result in the loss of 340 jobs, on top of the 1,000 redundancies
that have previously been announced.

Looking at their actions you can see that they are trying to reduce costs
and are focused on the bottom line. More interestingly, their recent Oil
tax which was levied on tickets shows they have pricing power. This could
be allow them to re-raise the oil levy if it needs it when oil prices rise
again.

Qantas is an interesting company that has been undervalued for a while. I
regret not getting into this earlier a it shows great value.
I wouldn't buy Qantas at this price but look at it if it falls back into
the 3.50 - 3.70 range.

Good Luck Investing