Qantas sounds alarm, decries uneven playing field

The Qantas Group has issued a profit warning, saying it expects to report an underlying loss before tax in the range of A$250 million (US$223.7 million) to $300 million for the six months ending 31 December 2013. The carrier noted that trading conditions saw a marked deterioration in November in particular, with both passenger loads and yields below the already negative trends for the year-to-date.


decries uneven playing field Qantas sounds alarm


The Qantas Group has issued a profit warning, saying it expects to report an underlying loss before tax in the range of A$250 million (US$223.7 million) to $300 million for the six months ending 31 December 2013. The carrier noted that trading conditions saw a marked deterioration in November in particular, with both passenger loads and yields below the already negative trends for the year-to-date.

Qantas CEO Alan Joyce said the circumstances demanded urgent action. “We will do whatever we need to do to secure the Qantas Group’s future,” he said. Joyce has flagged a complete review of the Group’s structure, indicating that capital expenditure and asset ownership would be reviewed, which could include the sale of non-core assets including its stake in Helloworld, Sydney Terminal, the freight business and a partial float of its frequent-flyer business or a sell-down of its domestic business.

“The challenges we now face are immense – but we will overcome them and we will continue to build a stronger and better Qantas for Australia. Joyce is also pushing for short-term government assistance that he claims is needed to compete with rival Virgin Australia and for the easing of foreign ownership restrictions on Qantas.