Qantas nosedives to AU$245m loss
Thu, 23 Aug 2012 11:32a.m.
By 3 News online staff
Qantas CEO Alan Joyce has announced the airline has posted a AU$245 million full-year loss, even greater than forecast by analysts.
The result is the airline’s first full-year net loss since it was privatised in 1995, and comes despite a 5.6 percent increase in revenue to $15.7 billion.
It means the struggling carrier will face more pressure to cut costs and streamline operations, with soaring fuel prices and a weak international arm already cutting into its earnings.
Qantas says the result was also affected by industrial action that forced the airline to ground its fleet in late 2011, costing it $194 million.
The huge loss was widely expected, with Mr Joyce announcing earlier this week that he would forgo any bonus or pay rise for the 2012 financial year.
“It’s absolutely appropriate that when company returns go down, executive pay should go down as well,” he told the Australian Financial Review.
The company has already announced plans to axe 2,800 jobs, get rid of unpopular routes, and slash capital spending by $700 million over the next two years.
In the last year, the airline has lost ground in its share of international passengers travelling in and out of Australia to Singapore Airlines and Emirates.
Qantas shares have taken a hit over the past year, reaching a record low of 96 cents in June. They closed yesterday at $1.17.
Shareholders will not receive a dividend from the 2012 financial year.
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