Qantas Profits Crash

In line with many of the world’s major airlines Qantas, Australia’s national carrier, has been hit by the economic downturn, reporting an AUS$ 181 million profit before tax for the year to June 2009, a huge 87% drop compared to a year ago.  CEO, Alan Joyce said the current economic recession played a significant part in the deterioration of the company’s profit, but it was also affected by increased competition both domestically and internationally.  He added that other one-off events had also compounded the problem, including protracted industrial action, the H1N1swine flu pandemic scare and the costs associated with introducing its new Airbus A380s.  Looking forward, Mr Joyce said there were encouraging signs of an improvement, but volatility in capacity, fuel costs and passenger demand made it impossible to make profit forecasts for the next year.