REPORTING SEASON: Qantas Airways Limited (QAN)
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Figure 1: Qantas Airways Limited 12 month chart
Qantas (QAN) Australia’s largest airline, announced a $252 million loss for the 6 months to the end of 2013, slightly better than the $277.5 million loss the market expected.
The loss was driven by; tight competition, low returns and demand in its international business, higher fuel costs and the set up cost incurred for Jetstar Asia.
QAN said it will cut 5,000 full-time equivalent positions by the end of 2017- this includes the 1,000 job cuts Qantas announced to the market back in Dec 2013.
The company wide redundancies will cost around $500 million and 1, 500 management jobs will go.
Qantas has placed a wage freeze for all staff until the company returns to profit.
Expenses increased by 2% to $8.1 billion, as Qantas spend more on fuel, up 3%, and increased costs from associates up 63%, mainly the start-up cost for Jetstar Japan & Hong Kong.
QAN said it will not put any more cash into Jetstar Asia at this stage.
Qantas International posted an underlying EBIT loss of $262 million, compared to a $91 million loss in 1H12.
Qantas freight revenue lifted by 5% to $500 million while its charter operations lost money and passenger revenue fell 4%.
QAN will defer delivery of 3 new Boeing 787-8 Dreamliners and 8 Airbus A380s, and it will stop non performing air routes, it also announced the sale of its long term lease at Brisbane Airport.