Qantas -huge loss but future promising

QANTAS 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 late last
month.
“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.