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Qantas posts record $2.6 billion loss

Staff writer |
Australia's airline Qantas revealed a full-year loss of 2.8 billion Australian dollars ($2.6 billion), the worst result in the company's history.

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Qantas blamed weak demand in Australia, low consumer and business confidence and higher fuel prices for the company's record loss. Other factors contributing to the down turn were costs associated with its transformation program, which involves letting go thousands of workers, closing facilities and retiring aircraft.

The major fleet writedown of 2.6 billion Australian dollars (2. 43 billion U.S. dollars), includes its flagship A380 fleet and its older Boeing 747s.

Qantas CEO Alan Joyce said in a statement: "There is no doubt today's numbers are confronting, but they represent the year that is past. We have now come through the worst. With our accelerated Qantas Transformation program we are already emerging as a leaner, more focused and more sustainable Qantas Group."

"There is a clear and significant easing of both international and domestic capacity growth, which will stabilize the revenue environment. We expect a rapid improvement in the Group's financial performance."

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