Qantas reports $256 million loss
August 24 , 2012
Australian airline Qantas has reported its first annual loss since it was privatized in 1995 on the back of high fuel costs and increasing losses at its international operations.
The firm made a net loss of $256 million for the year to June 30, compared with a net profit of $261 million in the previous year
Qantas has also cancelled orders for 35 Boeing Dreamliner jets worth $8.5 billion.
Alan Joyce, chief executive of Qantas, said growth was expected to slow down due to the uncertain global economic conditions.
The firm has already announced cost cutting measures including canceling services on loss-making routes and streamlining its maintenance operations.
The restructuring plan is also expected to result in 2,800 job cuts.
The firm said the measures were likely to save as much as $313 million a year.