Sydney, Aug 21: Australian flag carrier Qantas posted its first loss as a public company today after the war on Iraq and the Sars epidemic ate into earnings for the carrier already struggling in a battered airline sector.

Qantas Airways Ltd. managed a better-than-expected full-year net profit of 343.5 million dollars (225.3 US), down 19.7 percent on last year, but revealed it lost nine million dollars in the six months to June -- the first time it has been in the red since privatisation in 1995.
Chief executive Geoff Dixon said he expected Qantas' performance would improve in the 2004 financial year and he hoped passenger numbers would reach pre-Sars levels by December.
The full-year result beat market estimates of between 325 million dollars and 339 million dollars.
Dixon had warned in May that profits could be slashed by 30 percent as the airline battled against the "most difficult trading conditions in history".



In a statement to the Australian Stock Exchange, Qantas warned that industry conditions remained challenging.



"After a record first half we saw all sections of our business come under severe strain in the second half, with inbound visitors to Australia falling by more than 20 percent in some months and by up to 45 percent on some Asian routes," Dixon said.



"The fallout from 9/11, constant security alerts, acts of terrorism, the war in Iraq and the Sars pandemic have all affected both inbound and outbound travel," said chairman Margaret Jackson.


Bureau Report