Qantas Boeing Aircraft Australia losses

Australian carrier Qantas has scrapped its order with Boeing for 35 B787-9 aircraft, following its first full year loss since privatisation in 1995, citing high fuel costs and increasing losses from its international operations.

Qantas has also postponed the potential delivery date for a further 50 aircraft by two years, to 2016, because of lower growth requirements.

The airline also revealed that the Group would acquire the B787-8 aircraft as planned and its 15 B787-8 aircraft deliveries to Jetstar will go ahead on schedule, with the first aircraft to be delivered during the second half of 2013.

Alan Joyce, Qantas Group CEO, said the Group has been through an exceptional period in its history during the past 12 months.

"Qantas’ international turnaround plan is on track and set for improvement in 2012/13," Joyce added.

"Qantas has also postponed the potential delivery date for a further 50 aircraft by two years."

"We will continue to invest capital efficiently as we target greater competitiveness and customer satisfaction to deliver a stronger Qantas Group."

The fleet move followed the airline reporting a net loss of A$244m ($256m), which is a half-billion-dollar overturn from a net profit of A$250m a year ago.

The airline’s underlying profit before tax during the period was A$95m, representing a drop from A$552m recorded during the previous year.

Qantas has recorded one-off charges which totalled A$400m, while its fuel bill increased to A$4.32bn, up by 18% over the rise during the previous year.

The carrier, as part of its essential transformation programme, is also planning to separate the loss-making international business from its profitable domestic facility, cutting loss-generating routes and 2,800 jobs, and reducing capital expenditure during next two years to A$1.9bn.

Image: Qantas had postponed the fifty Boeing 787-9 aircraft delivery to 2016. Photo courtesy of: Qantas Airways Limited.