Qantas posts 'confronting' $2.8b loss after hefty writedowns
Qantas has reported a lower than expected full-year underlying loss before tax of $646 million, but booked a statutory loss of $2.8 billion as a result of hefty restructuring charges and writedowns to its fleet.
The airline has decided to hold on to its frequent flyer program, as expected, but will form a new holding company that will allow its international business to participate in future consolidation opportunities.
"There is no doubt today's numbers are confronting, but they represent the year that was past," Qantas chief executive Alan Joyce said.
"We have now come through the worst. There is a clear and significant easing of both international and domestic capacity growth."
Analysts had expected the airline to report an underlying pre-tax loss of around $750 million but had not expected the airline would take such heavy write-downs on its fleet
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Qantas posts 'confronting' $2.8b loss after hefty writedowns
A terrible result... I didn't think it would be this bad..