The Qantas Group has announced a record half-year PBT loss of $252 million broken down as follows:
- Domestic a $57 million profit
- International $262 million loss
- Loyalty – a record $146 million profit
- Freight $11 million profit
- Jetstar Group airlines a $16 million loss
Qantas will return and lease back its Brisbane terminal resulting in a net gain of $112 million for the business.
There will be a reduction in domestic capacity with A330s redeployed to international services to accelerate B747-400 retiement.
Brisbane and Sydney-Singapore services will be downgraded to A330 aircraft. Melbourne – London services will be permanently re-timed.
B767 retirement will be accelerated with the fleet to be retired by the second half of FY15.
While Jetstar experienced a 2 per cent improvement in unit costs, Jetstar Asia has experienced significant yield, as well as fuel price and foreign exchange pressure in its Asian operations. Growth across its Asian operations will be frozen and the current A320 order book will be renegotiated with Airbus.
The last three of 14 Boeing 787-8 orders for Jetstar will be deferred.