Mike King, Special Correspondent | Aug 23, 2012 9:10AM EDT
Australia’s Qantas Group has canceled orders for 35 aircraft with Boeing after recording an annual loss.
The airline said that as a line-end carrier covering long distances, soaring fuel costs had played a major role in its net loss of Aus$245 million ($256 million) for the year ended June 30, compared to a Aus$250 million profit a year earlier. Qantas Freight’s underlying EBIT totaled Aus$45 million, down Aus$17 million year-over-year.
“The result reflects a broader downturn in global air freight markets, plus adverse fuel price and foreign exchange impacts that were only partially offset by yield improvements,” Qantas said.
Qantas has taken steps to save almost $9 billion by cancelling commitments to purchase 35 Boeing 787-9s from Boeing, but has retained options and purchase rights for 50 of the aircraft.
Deliveries of 15 B787-8s to its subsidiary carrier Jetstar will continue as planned, with the first aircraft scheduled to arrive in the second half of 2013.
Contact Mike King at michael@borderline.eu.com.