Airline Qantas reports net loss
Qantas Airways has reported a 245 million Australian dollar (£162 million) annual loss in profits, hurt by rising fuel prices, a series of strikes that temporarily grounded its fleet and its struggling international division.
The Australian flagship carrier's net loss for the 12 months through June 30 compares with a profit of 250 million Australian dollars (£165 million) last year.
It was the first time since Qantas - nicknamed the Flying Kangaroo - went private in 1995 that the airline reported a net loss.
After posting the result, chief executive Alan Joyce said Qantas would be cancelling its order for a new fleet of 35 Boeing 787-9 aircraft, worth 8.5 billion US dollars (£5.3 billion) at list prices. It is still planning to buy 15 787-8s.
"The B787 is an excellent aircraft and remains an important part of our future. However, circumstances have changed significantly since our order several years ago," Mr Joyce said in a statement. "It is vital that we allocate capital carefully across all parts of the Group."
Qantas blamed the annual loss on its 4.3 billion Australian dollars (£2.8 billion) fuel bill - up 18% from last year - an industrial dispute that the airline said cost 194 million Australian dollars (£128 million) and its international business, which lost 450 million Australian dollars (£297 million) and is struggling amid increased competition.
"Our biggest challenge is Qantas International, but its transformation is on track," Mr Joyce told reporters. "Our goal is to return it to profit and ensure it remains Australia's iconic flagship carrier."
Qantas said underlying profit before tax - the airline's preferred measure of financial performance - was 95 million Australian dollars (£62 million), a steep drop from 552 million Australian dollars (£365 million) a year ago.