There was more bad news for Qantas today as shares in the group fell by more than 15 per cent following the announcement of a profit warning and further job losses.
The airline said trading conditions had seen a “marked deterioration” amid tougher competition and slowing demand, with a further 1,000 jobs now to be cut.
Qantas said in a statement it expects to makes losses of up to A$300m for July-to-December as it continued to restructure its operations.
Chief executive Alan Joyce said the airline was facing “immense challenges”.
The situation demanded urgent action and the airline would “do whatever we need to do to secure the Qantas Group’s future” Joyce added.
He blamed record fuel costs, a strong Australian dollar and fierce competition from subsidised rivals.
In August, Qantas reported a net profit of A$6m in the year ending 30th June, bouncing back from a loss of A$244m the year before.
However, the firm’s earnings during that period were lifted in part by the A$125m settlement it received from Boeing after it cancelled 787 orders.