Qantas posts $2.6 billion loss for year

SYDNEY — Qantas Airways Ltd. on Thursday posted a record 2.8 billion Australian dollar ($2.6 billion) loss, reflecting a profit-draining battle with its smaller rival Virgin Australia and aircraft write downs.

The loss for the financial year ended June 30 is the largest the former state-owned airline has posted in its 94-year history. It made an AU$1 million profit in the previous year.

The dire result was expected. Shares of Qantas were up 7 percent in Sydney on the airline’s confirmation it would separate its domestic and troubled international businesses. It will establish a company for the international business that will be able to attract new investors after an Australian law change eased limits on foreign investment in Qantas

The result included an AU$2.6 billion write down of the value of its aging international fleet of Boeing 747s and Airbus A380s, reflecting a weakened Australian dollar.

Excluding the write down and other one-off costs, Qantas made an underlying pre-tax loss of AU$646 million, compared to a AU$186 million underlying profit a year earlier.

Qantas chief executive Alan Joyce described the result as “confronting,” but said the massive loss represented history.

“We have now come through the worst,” he said in a statement.

“With our accelerated Qantas transformation program, we are already emerging as a leaner, more focused and more sustainable Qantas group,” he said.

Joyce said the underlying loss for the latest year reflected higher fuel costs and growth in its passenger capacity outstripping demand.

Joyce forecast a profit in the first half of the current fiscal year.

The airline announced in February it would cut its employees by 5,000. So far it has shed 2,500 workers.

More in Herald Business Journal

Voters are on the sidelines as the port fills a vacant seat

Troy McClelland resigned from the Port of Everett commission too late for an election before 2019.

In space capsules today, little room but big improvement

Boeing and SpaceX are relying on a tried-and-true design as they each develop new spacecraft.

First Boeing KC-46 delivery to Air Force slides into 2018

Certification milestones have been missed, and problems have emerged in flight test, a source says.

Newest must-try eatery: 85°C Bakery Cafe in Lynnwood

The popular bakery, part of a Taiwan-based chain, is already drawing out-the-door crowds.

Snohomish County tax liens

Tax liens are gathered from online public records filed with the Snohomish… Continue reading

Trudeau: Canada could stop dealing with Boeing over dispute

Boeing had petitioned the U.S. to investigate government subsidies of Bombardier’s CSeries aircraft.

Toys ‘R’ Us files for bankruptcy but keeps stores open

Retailers of all kinds are struggling. Toys ‘R’ Us is among at least 18 other bankruptcies this year.

Marysville-Arlington fiber-optic link planned by Comcast

The high-speed internet line, to be ready next year, is seen as a boost for business development.

‘Cheese that was grass 24 hours ago’ wins a farm accolades

Ferndale Farmstead specializes in authentic Italian cheeses — made with with American milk.

Most Read