Qantas Reports Loss, Adjusts Aircraft Orders

Qantas image

Qantas image

Australian flag carrier Qantas Group has reported a loss of AUS$244 million in the year ended June 30, 2012 – the first annual loss the airline has recorded since it was privatised in 1995.
The carrier blamed rising fuel costs and the industrial action that grounded its fleet in October 2011, and stated that all of its businesses – including low-cost subsidiary Jetstar – had been profitable, with the exception of Qantas’ international network.
The group’s future fleet delivery profile has been restructured in response to its financial results and 35 orders for Boeing 787-9s, worth US$8.5 billion, have been cancelled.  However, the deliveries of 15 B787-8s to Jetstar will continue as planned.
Whilst admitting that it had been “a challenging year”, the group insisted that, “it is well-positioned for a strong, sustainable future”.
CEO Alan Joyce commented: “Qantas has been through an exceptional period in its history over the past 12 months.  Over the course of the year, we made significant progress in advancing the group’s strategy – building on our strong domestic business and frequent flyer programme and growing Jetstar across Asia.  Qantas’ international turnaround plan is on track and set for improvement in 2012/13.
“We are now coming off a period of high capital expenditure that has given us the youngest fleet since Qantas became a public company in 1995 – an average age of 8.3 years for [our] passenger aircraft.”  (Qantas)