These figures reveal a big secret behind the success of Qantas as it heads for a record profit

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• In an environment of rising bond yields, Qantas benefits from its negative working capital position.
• The company is able to tap unique funding sources, such as up-front payments by banks for its Frequent Flyer program.
• Qantas’ negative working capital position is by far the highest among ASX200 companies.

Qantas issued guidance this morning for a record full-year profit of between $1.55 billion and $1.60 billion, despite a sharp increase in oil prices.

The result is another step forward in Qantas’ operational turnaround, but analysis from Credit Suisse (CS) highlights another unique factor in its business model — one that could make Qantas shares more attractive in an environment of rising bond yields.

See the rest of the story at Business Insider

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