Suffering its first annual loss since 1995 when it was privatized, Australian airline Qantas Airways cancelled an order for 35 Boeing 787 Dreamliners to try to curtail expenses.
Qantas Airways announced it saw a net loss of US$257 million in the 12 months ended June 30, 2012 as a result of high fuel costs, a series of strikes, and weak international demand.
The Sydney-based airline saw a profit of $250 million a year earlier.
The airline said it was canceling its order for Boeing’s more fuel-efficient 787-9 aircraft, which have a list price of $8.5 billion, as part of a plan to improve the company’s bottom line.
The company still intends to buy 15 787-8s and, despite cancelling the order for 35 of the 787-9s, it is keeping its options on whether to buy up to 50 of these airplanes.
Qantas officials neither provided a profit guidance nor commented on when they expect to be back in profit, as they observed the continuing weakness of the global aviation demand, the stagnant global economic conditions, the steep fuel prices, the fluctuating exchange rates, and the airline’s fleet restructuring.
Photo: Alex E. Proimos
