Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Qantas has first loss since '95, cancels order for 35 planes

Qantas reports first loss since 1995, cancels orders for 35 planes

Aug. 23 (BusinessDesk) - Qantas Airways, Australia’s biggest airline, is cutting orders for 35 Boeing 787-9 aircraft for a saving of US$8.5 billion as it announces its first trading loss since being privatised in 1995.

The airline reported a statutory loss of A$244 million for the year ended June 30, a half billion dollar turnaround on the profit of A$249 million a year earlier, Qantas said in a statement to the ASX.

The loss came despite a 5.6 percent lift in total group revenues to A$15.72 billion and reflects what the company described as "a difficult year of major transformational change" and a record result on an underlying operating earnings basis for its budget carrier, Jetstar.

That's despite a report earlier this week by Fairfax Media that Qantas subsidiary JetConnect is losing money in the heavily contested trans-Tasman trade. Today's group result makes no specific mention of New Zealand operations.

However, in an accompanying announcement, Qantas says it is restructuring its plans for fleet upgrades with Boeing 787-9's, cancelling orders for 35, taking delivery of the first of those remaining on order two years later than planned.

Deliveries of 15 B787-8 series aircraft will continue as planned, with the first arriving in the latter half of 2013, said chief executive Alan Joyce.

Orders for a further 50 787's will be retained, with the first of these to be available for delivery from 2016, in line with the announced turnaround plan for Qantas's troubled international business.

"In the context of returning Qantas International to profit, this is a prudent decision," Joyce said. While the B787 remained an important part of the airline's future, "circumstances have changed significantly since our order several years ago. It is vital that we allocate capital carefully across all parts of the group."

The decision will result in a net US$140 million impact on underlying profit before tax, which will be booked in the first half of the current financial year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Snail's Pace: Aucklanders Face Frustrating Commute Over Harbour Bridge

Journeys into Auckland's CBD took longer than usual as traffic banked up around the damaged Harbour Bridge. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO:

SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>

ALSO:

FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>