Qantas reports net loss
on 23/08/2012 08:24:25
The Australian flagship carrier's net loss for the 12 months through June 30 compares with a profit of AUS$250m (€211.2m) last year.
It was the first time since Qantas - nicknamed the Flying Kangaroo - went private in 1995 that the airline reported a net loss.
After posting the result, chief executive Alan Joyce said Qantas would be cancelling its order for a new fleet of 35 Boeing 787-9 aircraft, worth US$8.5bn (€6.85bn) at list prices. It is still planning to buy 15 787-8s.
"The B787 is an excellent aircraft and remains an important part of our future. However, circumstances have changed significantly since our order several years ago," Mr Joyce said in a statement.
"It is vital that we allocate capital carefully across all parts of the Group."
Qantas blamed the annual loss on its AUS$4.3bn (€3.6bn) fuel bill - up 18% from last year - an industrial dispute that the airline said cost AUS$194m (€163.9m), and its international business, which lost AUS$450m (€380.22m) and is struggling amid increased competition.
"Our biggest challenge is Qantas International, but its transformation is on track," Mr Joyce told reporters. "Our goal is to return it to profit and ensure it remains Australia's iconic flagship carrier."
Qantas said underlying profit before tax - the airline's preferred measure of financial performance - was AUS$95m (€80.3m), a steep drop from AUS$552m (€66.4m) a year ago.