Qantas sinks to full-year loss

Qantas has posted a net loss of AU$244 million (US$256m, GB£161m) for the 2011-12 financial year, as the restructuring of its international operations and high fuel prices hit the airline.

The Australian carrier, which has been hit by a series of industrial disputes since announcing plans to revamp its loss-making international operations last year, revealed that “transformation costs” have so far totalled GB£248, while its fuel bill jumped 18% to GB£2.7bn for the 12-month period. The cost of last year’s strike action, which eventually led to the grounding of the entire Qantas fleet, was put at GB£128m.

The carrier’s underlying pre-tax profit totaled GB£62m as Qantas International’s pre-tax loss of GB£297m was offset by Qantas Domestic’s pre-tax profit of GB£396m.

The airline’s Group CEO Alan Joyce called the last 12 months “an exceptional period”, but said Qantas had made “significant progress in advancing our overall group strategy”.

“[We are] building on our strong domestic business and frequent flyer program and growing Jetstar across Asia. Qantas’ international turnaround plan is on track and set for improvement in 2012-13,” Joyce said.

Qantas has also unveiled plans to restructure its Dreamliner delivery plan. Forming part of the group’s five-year international turnaround plan, Qantas will start receiving 15 Boeing 787-8 Dreamliners as planned from the second half of 2013. The delivery of its larger B787-9s however, has effectively delayed for two years. Firm orders for 35 B787-9s will be cancelled, while options for 50 further B787-9s will be brought forward, with deliveries able to commence from 2016, should Qantas exercise the options.

Qantas said the fleet restructure would boost its profits by GB£92m in the first half of 2012-13.

By Amanda Greenwood, 23 August 2012, Thursday 10:49 AM