Qantas
Qantas Airways Ltd Chief Executive Alan Joyce speaks during a news conference in Sydney August 28, 2014. Qantas Airways Ltd on Thursday reported its biggest financial loss ever after taking a hefty A$2.6 billion writedown due to a company restructure that includes a re-valuing of its fleet. Qantas, which formed an alliance with Emirates Airline last year in an effort to trim losses on international routes, posted a statutory net loss of A$2.8 billion ($2.6 billion) for the year to June 30, compared with a restated profit of A$2 millon a year ago. Reuters/David Gray

By stripping out AU$2 billion from its cost base, Qantas recorded a turnover of over AU$1.5 billion on Thursday. The lower fuel prices have acted as a blow to the cost cutting efforts of the airline. The yearly profit of the airline accounts to AU$557 million, which is a stark improvement from its prior loss of AU$2 billion a year ago.

The huge cost savings program worked for Qantas, thereby leading it to pre-tax gain of about AU$975 million in the financial year 2014-15. Chief Executive of Qantas Alan Joyce said that the end of battle with Virgin Australia has acted as the milestone behind their success. The airline has decided to give significant share in the profits to shareholders, who have been suffering due to the losses incurred by the brand for so long.

Making the underlying gain of AU$975 million public, Qantas announced its further plan of purchasing the new aircrafts to replace five of its earlier Boeing 747s. The airline brand will add eight Boeing 787-9 aircrafts starting 2017. These are considered the most advanced passenger jets today.

The specialised features of Boeing 787-9s make them stand out from a queue of other aircrafts. They are a bit longer with better range over 14,000 km compared to what 787-8s offer. The passenger cabins are extra-large with dimmable windows. The aircraft promises a smoother flight due to the advanced counter-turbulence technology.

“This milestone acquisition marks the scale of our turnaround and looks ahead to a new era for our iconic international airline,” Joyce said. He added that they have investigated the Dreamliner and it has been proved to be the right choice for Qantas. “The key reason we chose this particular aircraft is its incredible efficiency. Its new technology will reduce fuel burn, cut heavy maintenance requirements and open up new destinations around the globe,” he further described.

Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.

RELATED STORIES