Qantas posted record results for the FY16 as underlying EBITDAR increased by 22% to $3.4 billion on the back of a 2.4% increase in revenue. This was driven by the group’s 3-year transformation program which saved the group from the brink in late 2014. Jetstar Group and Qantas International were the standout performers delivering EBIT growth of 97% and 92%, respectively. As a result of strong cash flows, the group reduced debt by $807 million while simultaneously conducting a share buyback of $500 million. This has resulted in a net cash outflow of $928 million but is supported by the group’s $3 billion in cash and undrawn credit facilities. The group has maintained good credit metrics with funds from operations to debt being 52%, which is above the 45% minimum. The group’s adjusted debt to EBITDA is also at 2.5x which is less than the target ceiling of 4.0x. Click here for updated research on Qantas Airways Limited.