Qantas suffers $2.8bn loss

Qantas has suffered a huge $2.8 billion loss in the wake of the airline’s profit-draining battle with rival Virgin and another poor performance from its international division. The airline posted a net loss of $2.84bn for the year to 30 June, compared with a $1m profit a year ago. The result included a $2.6bn writedown to the value of its ageing international fleet. Excluding the writedown and other one-off costs, Qantas made an underlying pre-tax loss of $646m, compared with a $186m profit a year ago. Chief executive Alan Joyce described the result as ‘confronting’, but said the massive loss represented the year that is past. ‘We have now come through the worst,’ he said in a statement on Thursday. ‘With our accelerated Qantas transformation program we are already emerging as a leaner, more focused and more sustainable Qantas group.’ The airline has ruled out selling or floating its profitable frequent flyer business, Qantas Loyalty, to fund its turnaround, according to theGuardian.com