Qantas has reported a massive net loss – more than predicted – of AUD$2,8 billion for the year ended June 30, 2014. But the airline has “come through the worst”, said Qantas ceo, Alan Joyce, at the announcement of the results in Sydney yesterday.
“There’s no doubt that today’s numbers are confronting. But they represent the year that is past, and we have now come through the worst. With our accelerated Qantas Transformation programme, we are already emerging as a leaner, more focused, and sustainable Qantas Group. Our work is on track and we will see accelerating benefits in the coming year,” he said.
The airline’s international division reported the biggest underlying loss: AUD$497 million for the year, more than double the AUD$246 million loss it posted the year before.
“There is a clear and significant easing of both international and domestic capacity growth, which will stabilise the operating environment. We therefore anticipate a rapid improvement in the Group’s financial performance in financial year 2015. The Qantas Group expects to deliver an underlying profit before tax in the first half of the year, subject to factors outside our control,” Alan said.
Qantas has decided to separate its domestic and international sectors, creating a new corporate entity for the Qantas International, to attract external investment and participate in partnership opportunities in the international aviation market.
The airline has decided to retain its loyalty programme, Qantas Loyalty, which recorded its fifth straight year of double-digit earnings growth.
