Qantas cancels order for new airliners following massive $244m loss

Qantas Airways’ boss Alan Joyce has cited an "uncertain global context" as the reason for the cancellation of a new 8.5 billion dollar investment in 35 new airliners.

Last Updated: Aug 23, 2012, 12:38 PM IST

Sydney: Qantas Airways’ boss Alan Joyce has cited an "uncertain global context" as the reason for the cancellation of a new 8.5 billion dollar investment in 35 new airliners.

While announcing a larger than expected loss for the carrier in Sydney, Joyce blamed "record" high fuel bills and transformation costs as factors influencing the airline''s statutory loss after tax of 244 million dollars.

Joyce said that Qantas would be canceling its order for a new fleet of 35 Boeing 787 aircraft, which are worth 8.5 billion Australian dollars at list prices.

“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. It is vital that we allocate capital carefully across all parts of the group,” News.com.au quoted Joyce, as saying.

Qantas blamed the annual loss on its 4.3 billion Australian dollar fuel bill, which was up 18 percent from last year, an industrial dispute that the airline said cost 194 million Australian dollars, and its struggling international business, which lost 450 million Australian dollars.

“Our biggest challenge is Qantas International, but its transformation is on track. Our goal is to return it to profit and ensure it remains Australia''s iconic flagship carrier,” Joyce said.

It is the first time since Qantas went private in 1995 that the airline posted a net loss, the report said.

ANI