Australian airline Qantas has reported record losses of A$2.8 billion for the 12 months ending June 30 2014.
The results, which are the worst in the airline’s history, showed an underlying loss before tax of A$646 million for the year ending in June – this compares to a $6 million profit a year earlier.
The losses were mainly due to the A$2.6 billion write-down to the value of its international fleet.
Qantas 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.
“With our accelerated Qantas transformation program we are already emerging as a leaner, more focused and more sustainable Qantas group.”
Joyce also ruled out selling the airline’s frequent flyer programme.
“After careful consideration, our judgment was that Qantas Loyalty continued to offer major profitable growth opportunities, and there was insufficient justification for a partial sale,” Joyce said.
The results follow an announcement earlier this year that the airline is undergoing a transformation programme aimed at streamlining and modernising its operations. It plans to cut routes, sell aircraft and axe 5,000 staff.
Qantas.com