Australia’s flagship carrier,Qantas Airways, has announced its first ever annual loss since privatisation in 1995.
The company posted losses close to 200 million euros. It also cancelled 35 new Boeing 787 Dreamliners worth 6.5 billion euros as a result.
Qantas has suffered from high fuel prices and industrial unrest.
Alan Joyce, Qantas Chief Executive, said: “Our biggest challenge is Qantas International, but its transformation is on track. Our goal is to return it to profit and ensure it remains Australia’s iconic flagship carrier.”
Aviation analyst Tony Webber believes Qantas needs to make changes: “They need to get rid of their fuel hedging because it is too risky. They need to take advantage of a stronger Australian dollar when the fuel price goes up, and they need to reduce their volume of fuel consumption and improve the efficiency of their aircraft.”
The airline is in the middle of a five-year turnaround process to improve its performance in difficult economic times.