Qantas has just announced an Underlying PBT half-year loss of AUD 252 million from July 1 2013. The troubled international division has recorded an Underlying EBIT of $262 million ($91 million a year ago) and domestic made a profit of $57 million ($218m a year ago). Jetstar has made a marginal profit of $16 million down $128 million in the same period last year.
Included is confirmation of 5000 job losses, but it’s uncertain whether this is in addition to the 1000 already announced.
Also indicated is “significant changes to fleet plans and network“. Capex is also expected to be reduced by $1b over the next 2 financial years.
Included is a hint as to what they’re planning to do to reverse the losses:
- Accelerate cost reduction
- Right-size fleet and network
- Work existing assets harder
- Defer growth
- Align capital expenditure to financial performance
- Accelerate simplification
News has already broken that a deal has been made for the renegotiation of their 31 year lease at Brisbane airport, which should create some breathing space in the short term.
More to follow…