AUSTRALIAN airline Qantas yesterday announced a loss of AU$ 2.8bn (£1.57bn), blaming the rising cost of fuel.
The airline also cited a AU$2.6bn write down on its international fleet and poor consumer spending as reasons for the devastating results.
The record figure was considerably larger than the AU$750m analysts were expecting and marked a second consecutive year of losses for the airline, which also announced 5,000 job cuts in February.
Despite the news, chief executive Alan Joyce said the firm’s cash balance and liquidity position was “strong”. He added the group was expected to return to underlying profit during the first half of 2015.
The airline’s share price reacted positively to Joyce’s statement, climbing 6.95 per cent to close on AU$1.35 in Sydney.