Shares of Qantas slumped to a record low – down almost 19 percent – after it warned of its first annual net loss since it was privatised in 1995.
The Australian airline blaming deep losses at its international operations, weak travel demand and soaring fuel costs.
The forecast comes two weeks after Qantas unveiled plans to separate its loss-making international business from its profitable domestic division.
For the past 12 months, the carrier has been wrangling with unions that led to the grounding of its fleet for nearly two days last year.
Chief Executive Alan Joyce, whose turnaround plan and handling of the unions has won shareholder approval, said the past few weeks had been particularly harsh, forcing the airline to issue this warning to investors.
The airline’s profit warning underlines the global aviation sector’s struggles as high oil prices and sagging demand due to the European economic crisis take their toll.
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International breaking news | euronews online world breaking news in video
- 3Caught red-handed: the Russian Major fighting in Ukraine
- 4Video footage shows massive explosion in Tianjin, China
- 5Ukraine puts top Russian general Gerasimov on ‘most wanted’ list
- 6Why World Elephant Day matters
- 7Momentum for Mars: Astronauts say mission is inevitable
- 8Latest News Bulletin
- 9Who came out top in the US Republican television debate?
- 10UK: at least 7 dead after plane crashes into road in Brighton
- 11Snowden, Assange and Manning statues unveiled in Berlin
- 12Virginia:TV journalist and cameraman shot dead live on air
- 13ISIL militant group claims to have killed Croatian hostage in Egypt
- 14Earth Overshoot Day…Pushing Mother Nature too far
- 15Windows 10, three weeks on: the good, the bad and the ugly
- 16Bringing the trolls out of the dark: Russian ‘troll’ awarded 1 rouble damages
- 17As ‘Daily Show’ Jon Stewart’s tenure ends, scholars say goodbye to their research topic
- 18European Union News | euronews: latest breaking news and headlines about European Union
- 19International news | euronews, latest international news
- 20Scientists find sinkhole cave under Mexico’s Kukulkan Castle Pyramid
Wires > Business
- 20:47 CET U.S. sanctions against Chinese firms could be next week – FT
- 19:20 CET Prada tries to renegotiate Hong Kong shop rents amid China slowdown
- 19:17 CET UniCredit CEO says no numbers yet on potential lay-offs
- 18:29 CET EU regulators consult on compromise in derivatives spat with U.S.
- 18:22 CET Exclusive – Charterhouse dials up Deutsche to sell French call…
- 18:15 CET With abundant energy, Iceland woos power-hungry data centers
- 18:03 CET Bank of Ireland CEO eyes early preference share redemption
- 18:01 CET FTSE has biggest one-day gain in a week, buoyed by ECB policy…