Qantas posts $3b loss despite cutting 5000 jobs
QANTAS chief executive Alan Joyce has told investors the company is attempting to "turn around" after posting an loss of almost $3 billion for the financial year.
The shocking headline number is mostly thanks to writing down $2.6 billion off the value of its international operations, which will have "no cash impact".
"It is a writedown to the carrying value of aircraft that Qantas has no intention to sell and intends to retain in its fleet," according to the investor statement.
Mr Joyce said it was an "extremely difficult period" for the company.
In a statement, he said Qantas had made a "deliberate choice to continue investing in core initiatives for customers in order to hold our competitive position, keep our brands strong and maintain a yield premium in a challenging market".
"As we transform our business at pace, our airlines are providing better service than ever."
Mr Joyce also revealed there were now plans to consider selling "non-core assets such as airport terminals, property and land holdings" that would go to paying off company debt.
The company has $3 billion in cash, up from about $600 million from the half year, plus access to a further $630 million and an operating cash flow of $1.1 billion.
ABC is reporting the result is much worse than the $800 million loss most analysts were expecting.
The airline is already cutting 5,000 jobs over the next three years to try to rein in costs.
A Qantas media conference is expected later this morning.
Summary of results:
- Underlying Loss Before Tax: $646 million
- Non-cash fleet writedown post-structural review: $2.6 billion
- Statutory Loss After Tax: $2.8 billion
- Underlying fuel costs: $4.5 billion, up $253 million
- Qantas Transformation benefits: $440 million
- Operating cash flow: $1.1 billion
- Group comparable unit costs down 3 per cent
- Liquidity: $3.6 billion
- Underlying Profit Before Tax expected in first half FY15
- No final dividend